Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Course: Assurance and Audit Services As the partner in charge of the audit engagement of Serba Serbi Berhad, you have reviewed the audit working papers.

Course: Assurance and Audit Services

As the partner in charge of the audit engagement of Serba Serbi Berhad, you have reviewed the audit working papers. The audit team has highlighted the following matters in the working papers.

(a) Twenty per cent (20%) of Serba Serbis recorded revenue comprises cash sales. Proper records of cash sales have not been maintained. Consequently, the audit team was unable to design audit procedures to verify the cash sales.

(b) During the current year, the company changed the method of charging depreciation on its fixed assets from the straight line to the diminishing balance method. However, all the required disclosures have been included in the notes to the financial statements.

(c) The previous years financial statements were audited by another firm of chartered accountants, which has issued an unmodified opinion on those financial statements.

REQUIRED

Discuss the impact of each of the above matters on the auditors report.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Debunked An Auditor Reviews The 2020 Election And The Lessons Learned

Authors: Joseph Fried

1st Edition

1645720756, 978-1645720751

More Books

Students also viewed these Accounting questions

Question

d. Who are important leaders and heroes of the group?

Answered: 1 week ago