Auditing

ALTINO QUESTION The audit report is the Soal outcome in the soutire audit process Describe the responsibilities of the company's directors as stated in the Auditors' Report (4 marks 2 Describe the differences between internal and external editors (2 marks) . The following paragraph was extracted from an Auditors' Report "Without qualifying our opinion..the Company incurred net loss of RM and the company current Kabilities exceeded its total assets by RM...These factors as set forth in Note...raise substantial doubt that the company will be able to continue as a going concern." Explain the type of wadit report issued based on the above paragraph (4 marks) State two (2) indications to be considered by the auditors when evaloating the going concern of a client company (2 marks) ii d) For each of the following independent cases, determine 1 the type of audit opinion to be issued, and explain the reasons for your answer in (1) above. 10 Case 1 Champion Sdn Bhd has excluded certain lease obligation from the non-current assets and liabilities in the accompanying financial statements. However, in the auditor's opinion, the item is significant and therefore should be recognised as finance lease in order to conform to the approved accounting standards. (4 marks) The auditors were unable to observe all physical inventory counts and confirm the account balance of major accounts payable. As such, the auditors were unable to obtain all the information and explanation they considered necessary to satisty themselves on the existence of inventories and accounts payable. (4 marks) ALTINO QUESTION The audit report is the Soal outcome in the soutire audit process Describe the responsibilities of the company's directors as stated in the Auditors' Report (4 marks 2 Describe the differences between internal and external editors (2 marks) . The following paragraph was extracted from an Auditors' Report "Without qualifying our opinion..the Company incurred net loss of RM and the company current Kabilities exceeded its total assets by RM...These factors as set forth in Note...raise substantial doubt that the company will be able to continue as a going concern." Explain the type of wadit report issued based on the above paragraph (4 marks) State two (2) indications to be considered by the auditors when evaloating the going concern of a client company (2 marks) ii d) For each of the following independent cases, determine 1 the type of audit opinion to be issued, and explain the reasons for your answer in (1) above. 10 Case 1 Champion Sdn Bhd has excluded certain lease obligation from the non-current assets and liabilities in the accompanying financial statements. However, in the auditor's opinion, the item is significant and therefore should be recognised as finance lease in order to conform to the approved accounting standards. (4 marks) The auditors were unable to observe all physical inventory counts and confirm the account balance of major accounts payable. As such, the auditors were unable to obtain all the information and explanation they considered necessary to satisty themselves on the existence of inventories and accounts payable. (4 marks)