1.The followings are independent and material situations:

Required:

For each of the bellow independent situation, you are required to indicate the type of audit opinion you would issue, as well as the reasons for issuing the particular audit opinion.

a)An auditor hires an actuary to assist in corroborating a client's complex superannuation calculations concerning accrued superannuation liabilities that account for 35 percent of the client's total liabilities. The actuary's findings are reasonably close to the client's calculations and support the financial report.

b)A client holds a note receivable consisting of principal and accrued interest receivable. The note's maker recently filed a voluntary bankruptcy petition, but the client failed to reduce the recorded value of the note to its net realisable value, which is approximately 20 percent of the recorded amount.

Answer