1. As the senior auditor assigned to the audit of Mayberry Company’s financial statement for the year-ended 31 December 2020. You are reviewing the financial statements and observed that the current revenue reported amounted to US$ 18m and US$ 17m for the previous year. The financial report contains the following sections:
2. 
   
3. Chairman’s statement in which the chairman has commented that he is pleased to report an increase in revenue of 20% this year.
4. CEO’s review
5. Corporate Social Responsibility Report
6. Operating review
7. Financial Statements
8. Notes to the Financial Statements
9. 
   
10. Required:
11. 
    
12. What is the significance of the Chairman’s statement in the financial statements?
13. 
    
14. Identify the sections that would be included in ‘other information’ in the auditor’s report.
15. 
    
16. Describe the implications(s) of the section ‘other information in the auditor’s report as it relates to Mayberry Company.
17. 
    
18. Why should the auditor refer to the Chairman’s statement in the auditor’s report?
19. 
    
20. Differentiate between the FOUR (4) types of audit opinions. 
21. 
    
22. Explain TWO (2) reasons why the auditors would give a qualified audit opinion.

Answer rating: 100% (QA)

Importance of chairman statement chairmans speech highlights corporate activities strategies researc... View the full answer