Question 5 (10 marks)

(a)State whether the statement is true or false: (5)

Statement

Option 1. Non-adjusting events are events that already existed at the balance sheet date, thus the auditor need not concern him-/ herself with adjusting the financial statements. TRUE/FALSE

2. On placing reliance on an Expert, the auditor would only need to first determine the experts professional competence before placing reliance on his/her work. TRUE/FALSE

3. Assume the auditor assesses the risk of going concern of a company and has determined that there is a material uncertainty. Management have adequately disclosed of the matter in the Financial Statements as required by IFRS and as such the auditors opinion is modified to include an emphasis of matter paragraph. TRUE/FALSE

4. If the going concern assumption is NOT appropriate we would issue an adverse Opinion. TRUE/FALSE

5. Where the auditor cannot determine an appropriate basis of going concern, he/she would issue an adverse opinion. TRUE/FALSE