15.2 (20 marks 24 minutes) 1. When reporting on a set of financial statements, what are the objectives of the auditor?(2) 2. What are general purpose financial statements? 3. Fred Dedd the designated auditor on the audit of Pottholes (Pty) Ltd has been requested by the financial director of the company, not to provide a written audit report for the current year-end audit, but rather to present an oral auditor's report at the company's upcoming AGM. The financial director believes that this will give shareholders a much better understanding of the audit report as they will be able to ask Fred Dedd probing questions. Should Fred Dedd agree to this? Justify your answer. 4. In terms of ISA 700, in forming his opinion, the auditor is required to evaluate whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework, including consideration of the qualitative aspects of the entity's accounting practices. List 5 other matters which the auditor should evaluate before forming the audit opinion. 336 5. List the information which should be included in the introductory paragraph of the audit report. 6. Which of the following statements is false? Justify your answer. 6.1 a disclaimer of an opinion and an adverse opinion are the result of pervasive matters. 6.2 an emphasis of matter can be given instead of an adverse opinion but not instead of a disclaimer of opinion. 6.3 the audit report must be signed by the designated auditor. 7. What are the characteristics of a misstatement which has a pervasive effect on the financial statements? 8. What information should be included when signing off the audit report