4 Q#3 (a) (b) 5 (c) Why auditor cannot give opinion that "financial statements are correct" instead the opinion related to financial statement is: "financial statement gives true and fair view? If control and inherent risk are high, what is responsibility of auditor to set level of detection risk. Explain your answer with examples It is responsibility of management to detect fraud and errors. However, during quality control review by ICAP it was observed that if required audit procedures were applied, auditor can detect those errors. Had these errors be detected the opinion in audit report qualified instead of clean. Please explain if auditors are considered as guilty in the situation? Mr. Ehsan is appointed as auditor of GHI Telecom company. Ehsan's firm obtained services from GHI telecom but unable to clear the dues of last seven months. 5 (d) (e) 5 Management of both the companies decided to settle the unpaid amount for the audit fee. Sara and her husband Salman have agreement not to share any business information or interfere in work of other. Sara's husband has shareholding of 15% in POR Bank Limited but Sara have no information about shareholding of his husband. Can she be appointed as auditor of PQR? Please explain