1. 6.12 What are the contents of an unmodified auditor's report? Explain each section.
2. 6.13 Explain what a 'Key Audit Matter' is and under what circumstances it should be included in the auditor's report?
3. 5.17 What are the benefits of a financial report audit?
4. 5.23 On 31 March 2020, Black and Black (a firm of certified practising accountants) completed the audit of E-Wine Pty Ltd for the year ended 31 December 2019. E-Wine is a wine store thatoperates solely on the internet. On 15 May 2020, Tom Black (the audit partner responsible for E-Wine) received a phone call from the financial controller of E-Wine, Ms Chong, who was very angry. Ms Chong said that their accounts receivable clerk suddenly resigned a month ago. This sudden departure raised suspicions and, after an investigation of the accounting records, it was discovered that $200 000 was missing. Subsequently, the board met and decided Black and Black was almost entirely to blame. As a result, Ms Chong said the board had decided to dismiss Black and Black as auditors, effective immediately. Black and Black would receive written confirmation in the next week and legal action would probably follow. Required (a) Explain whether E-Wine has taken the proper action to remove their auditor.
5. 6.14 What are the different types of modified audit opinions? Explain each type.
6. 6.15 Under what circumstances may the auditor decide to include an 'emphasis of matter' section in the auditor's report?