Question
Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion. Draft the opinion paragraph and any corresponding
Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion. Draft the opinion paragraph and any corresponding basis of opinion paragraph (if any).
Flora Co had acquired another company few years ago which had become a division of Flora Co. Goodwill of $350,000 was recorded at the date of acquisition. Last year, the company has recorded loss from goodwill impairment of $100,000. In the current year, the company carrying value of the division was $800,000 and the recoverable amount is determined to be $900,000. Therefore, reversal of impairment was recorded for $100,000. The company has a net income of $2 m.
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