Question
For the following independent material situations, assume that you are the audit partner on the engagement: i. You are auditing Maulack Company Ltd for the
For the following independent material situations, assume that you are the audit partner on the engagement: i. You are auditing Maulack Company Ltd for the first time. Maulack Company Ltd has been in business for several years but has never had an audit before. After the audit is completed, you conclude that the current year balance sheet is presented fairly. The client did not authorise you to do work on the previous year's balance sheet. ii. Due to losses and adverse key financial ratios, an auditor has substantial doubt about a clients ability to continue as a going concern for a reasonable period of time. The client has adequately disclosed its 2020 Nov 16 ACCY962 T3, 2020 Page 6 of 6 financial difficulties in a note to its financial report, which do not include any adjustments that might result from the outcome of this uncertainty. iii. An auditor hires an actuary to assist in corroborating a clients complex superannuation calculations concerning accrued superannuation liabilities that account for 35 percent of the clients total liabilities. The actuarys findings are reasonably close to the clients calculations and support the financial report. Required: Identify the type of audit opinion report that you should provide. Give reasons
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