2) Vision Group is a parent company with a number of wholly owned subsidiaries. One of these, Courts Fiji Ltd, is a self-sustaining foreign subsidiary with manufacturing and distribution facilities throughout the Pacific. While the Vision group prepared its financials for the year ended 30 June 2017 the accounts included all the subsidiaries except Courts Fiji Ltd which was attached separately. The Financials included a note stating that the senior executives believe it would be misleading to consolidate Courts Fiji Ltd due to its unique and different operations from all other subsidiaries within the vision group. The note also shows details of the intra-group transactions.

Required : For this scenario discuss the audit issues to be considered and what impact these issue would have on the audit opinion. You may also justify the answer using relevant legislation such as the Corporations Act and relevant auditing standards.