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3Principle of Auditing I have put questions here before and I did not receive organized answers Please put the question code for example 1, 2,

3Principle of Auditing

I have put questions here before and I did not receive organized answers Please put the question code for example 1, 2, 3 or a, b, c, please solve correct answers I want to get a full mark I will not forget your favor

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In each of the following cases, identify and state the appropriate audit opinion. Give Reasons. 1. The financial statements are prepared as per the national standards and the financial statements are true and fair except for transactions relating to employee benefits. Some of these are revenue expenses and others are capital expenditure. Improper classification of the expenses incurred on employee benefits may lead to misstatement of information but do not affect the overall quality of financial statements. 2. The financial statements are prepared as per International Standards but the verification of the inventory was not possible as the auditor could not access the inventories stored at different locations. Some of the inventories were in transportation and no sufficient records are maintained. The auditor was not able to collect sufficient appropriate audit evidence to express his opinion. 3. Financial statements are prepared according to accounting principles, but the accounting records are manipulated to overstate the assets and understate the expenses. The auditor could obtain sufficient appropriate audit evidences to express his opinion. (6 Marks)

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