Question 33 (2 points)

Listen What audit report "opinion" would the auditor provide in the following situation?

(2 marks)

a. During your examination of ABC Company Ltd., you conclude there is a possibility that inventory is materially overstated due to error or fraud. The client refuses to allow you to expand the scope of your examination sufficiently to verify whether the balance is actually misstated. Your concern has lead you to think about resigning.

Question 33 options:

Unqualified

Qualified - GAAP Departure

Adverse

Disclaimer of opinion

Question 34 (2 points) Saved

Listen What audit report "opinion" would the auditor provide in the following situation? (2 marks)

You were engaged to examine Apollo Inc.s financial statements after the close of the corporations fiscal year. Because you were not engaged until after the balance sheet date, you were not able to physically observe the inventory count, which is a very material amount on the balance sheet. On the completion of your audit, you are satisfied that Apollos financial statements are presented fairly, including inventory about which you were able to satisfy yourself by the use of alternative audit procedures.

Question 34 options:

Unqualified - Other Matters Paragraph

Adverse

Qualified -Scope Restriction

Unqualified

Question 35 (2 points)

Listen What audit report "opinion" would the auditor provide in the following situation?

At the end of your audit of Quality Products Ltd., you conclude that the financial statements are presented fairly in all material respects. Only one item already mentioned in the notes to the financial statements keeps surfacing in your mind about the companys future, a hacker had broken into the companys sensitive network and it appears that payroll, accounting and inventory information has been stolen. Although there are no immediate damages to the company or its operations, you remain uncertain about the future effects of this theft of information and conclude that this is truly a very important event that the readers need to be aware of. (2 marks)

Question 35 options:

Unqualified - Emphasis of Matters Paragraph

Qualified - GAAP Departure

Unqualified - Other Matters Paragraph

Adverse