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You are the audit partner of Gus Ltd Audit Firm. You are responsible for the audit of two independent entities for the year 30 June 2021. Case 1 Save the Planet Ltd is a non-profit entity. You have discovered that the accountant position has been vacant for almost 4 months and a temporary accountant was hired. It has been identified that there are incomplete bank reconciliations for the audit period. (10 marks) Case 2 Meat Loaf Ltd a popular music company has all its overseas tours cancelled due to COVID 19 border closures. The company has applied for financial assistance from the bank for an extension of its bank overdraft until 2021. The costs of running the business are high and the company is unable to make sufficient cash flow to cover the costs. You have found that the accountant of Meat Loaf has not made the relevant disclosures and you are not satisfied as the auditor. (10 marks) Required Assuming that all amounts involved are material identify and discuss the most likely auditor opinion that you would issue on each financial report for the year ended 30 June 2021. You are the audit partner of Gus Ltd Audit Firm. You are responsible for the audit of two independent entities for the year 30 June 2021. Case 1 Save the Planet Ltd is a non-profit entity. You have discovered that the accountant position has been vacant for almost 4 months and a temporary accountant was hired. It has been identified that there are incomplete bank reconciliations for the audit period. (10 marks) Case 2 Meat Loaf Ltd a popular music company has all its overseas tours cancelled due to COVID 19 border closures. The company has applied for financial assistance from the bank for an extension of its bank overdraft until 2021. The costs of running the business are high and the company is unable to make sufficient cash flow to cover the costs. You have found that the accountant of Meat Loaf has not made the relevant disclosures and you are not satisfied as the auditor. (10 marks) Required Assuming that all amounts involved are material identify and discuss the most likely auditor opinion that you would issue on each financial report for the year ended 30 June 2021.
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Answer Case1 In case of Save the Planet Ltd the auditor should issue Discla... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date:
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