Question: Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write - down would reduce current

Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write-down would reduce current assets by 15 per cent and net profit before income tax by 11 per cent. What type of auditor's report should you issue?
An unmodified opinion with an Emphasis of Matter paragraph.
A disclaimer of opinion.
An adverse opinion.
A qualified opinion.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Question 2: Audit Opinions (20 marks) You are an external auditor and you are facing the following separate situation, the effects of all items below are material: Your audit client has not written...

Q:

Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write-down would reduce current assets by 8% and net profit before...

Q:

1 . The auditor s report now requires a description of key audit matters, which are: A . matters that, in the auditor s professional judgment, are of most significance in their audit of the financial...

Q:

Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write- down would reduce current assets by 8% and net profit before...

Q:

Your audit client has not written inventory down to net realisable value in accordance with approved accounting standards. The write-down would reduce current assets by 8% and net profit before...

Q:

The Lim Kim who is an auditor of Win Ltd has noted that inventory was not written down to its net realisable value in accordance with Australian accounting standards. The write-down would reduce...

Q:

2.1) Prepare the inventory general ledger account for the year ended 31 December 2022. Show all dates and calculations. Ignore VAT. (25 marks) 2.2) Prepare an extract from the Statement of Profit or...

Q:

6. RM'000 0 2 150 1 240 34 150 11 125 4 800 40 000 2 000 The following is the trial balance of Gigantic Bhd. as at 30 June 2018: RM'000 Freehold land 22 000 Building 62 400 Accumulated depreciation -...

Q:

Sky Dining (Pty) Ltd (Sky Dining) is a company that sells ready-made meals to operators within the airline industry. The entity has been in operation for over a decade and has a good reputation...

Q:

Sky Dining (Pty) Ltd (Sky Dining) is a company that sells ready-made meals to operators within the airline industry. The entity has been in operation for over a decade and has a good reputation...

Q:

Statistics and Probability You are given: M35 (t)=0.03, t0 $=0.05 1000A a 35:15 35:25 = =324.25 8.7351 Calculate 1000 V(A) using the retrospective approach. 35:251-

Q:

ZMC Corporation is planning to replace a network with a new Cisco network. ZMC is currently leasing the network for $19,500/month. The leasing company ZMC works with has configured a replacement...

Q:

A conservative current oppersting asset financing approach will result in permanent current assets and some seasonal current assets being financed using long term securities . True or false

Q:

If the following join statement is used to join two tables in a query, which of the following tables would all of the tuples in the relation appear in results? left join university.students on...