AUDITING PRACTICE QUESTIONS:

PLEASE BRIEFLY answer part a & part b

2. You have ahmost completed an audit when your audit manager pointed to the discovery of a material and unusual transaction. The transaction is the sale of treasury stock to the Managing Dirrector of your client's subsidiary of 200,000 shares with maricet value of $4,000,000.00. This incident occurred when you were about to issue an unqualified opinion. Required: What actions should you take as an External Auditar? List the steps you must take to satisfy yourself about this matter. b. Would you give a qualified opinion based on this matter? If YES or NO provide your justification in either case