Question
For the following independent situations, assume you are the audit partner on the engagement: Required: For each of the situations, identify the type of auditor's
For the following independent situations, assume you are the audit partner on the engagement:
Required:
For each of the situations, identify the type of auditor's opinion that you would issue. Justify your answers.
You have completed the audit of Fantasy Resort Ltd (Fantasy Resort) for the year ended 30 June 2019. The audit partner suggested that the value of properties on the Gold Coast were overstated by $16 million, a figure which was twice the level of materiality set for the audit. As a result of discussions with the audit committee, the CEO of Fantasy Resort agreed to revise the valuations downward by $10 million. All other issues were resolved to the satisfaction of the audit partner, resulting in an overall misstatement of the financial report of $6 million. The audit partner is now considering the effect of the misstatement on the auditor's report
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