State whether you agree or disagree with the following statements and explain your reasoning. Note: even...

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State whether you agree or disagree with the following statements and explain your reasoning. Note: even if you agree with the statement, you must explain why you agree. a) Sandeep Mandal, an audit senior, stated that an adverse opinion would be appropriate where the accounts of the audit client's subsidiary companies are not consolidated, resulting in a departure from general accepted accounting principals. b) Abdul Ahmed is planning the audit of an existing client and he has identified several new events and factors that will impact the audit plan. The fact that the client is currently negotiating to issue a new class of preferred shares to a new investor will impact the materiality assessment, specifically increasing the threshold. c) A high degree of competition or market saturation is a factor that will increase control risk at the overall financial statement level. d) During the client acceptance or continuance stage of an audit, the public accountant must gain an understanding of the client's business in order to identify internal controls that are in place and develop recommendations to address deficiencies in internal controls. e) The auditor is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting standard, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. f) In a compilation engagement, the mathematical accuracy of the financial statements is checked. There is no requirement for sufficient appropriate evidence; however, the auditor must not be associated with anything that is false or misleading. State whether you agree or disagree with the following statements and explain your reasoning. Note: even if you agree with the statement, you must explain why you agree. a) Sandeep Mandal, an audit senior, stated that an adverse opinion would be appropriate where the accounts of the audit client's subsidiary companies are not consolidated, resulting in a departure from general accepted accounting principals. b) Abdul Ahmed is planning the audit of an existing client and he has identified several new events and factors that will impact the audit plan. The fact that the client is currently negotiating to issue a new class of preferred shares to a new investor will impact the materiality assessment, specifically increasing the threshold. c) A high degree of competition or market saturation is a factor that will increase control risk at the overall financial statement level. d) During the client acceptance or continuance stage of an audit, the public accountant must gain an understanding of the client's business in order to identify internal controls that are in place and develop recommendations to address deficiencies in internal controls. e) The auditor is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting standard, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. f) In a compilation engagement, the mathematical accuracy of the financial statements is checked. There is no requirement for sufficient appropriate evidence; however, the auditor must not be associated with anything that is false or misleading.

Answer rating: 100% (QA)

a I agree with Sandeep Mandals statement An adverse opinion would indeed be appropriate if the accounts of the audit clients subsidiary companies are not consolidated resulting in a departure from gen... View the full answer