Mr. Anas Sulaiman and Mr. Nader Shah started their Audit Firm as partners in 2019. Details of Four (4) clients account are provided to you:

Client 1: Precious LTD

During the year Precious Ltd maintained proper records of inventory and cash. The audit team discovers no material errors in the companys accounting practices and found proper accounting records when the non-cash item of depreciation was reviewed.

Client 2: Blueberry Company

All records and back-up related to Plant, Property, and Equipment (PPE), Accounts Receivables, and Inventory were destroyed due to fire in the records room of Blueberry Company. The audit team was unable to perform audit procedures for verification of balances.

Client 3: Jupiter LTD

Jupiter Ltd had its accounts and financial statements verified by the Audit Firm and traced out the limitation of scope and deviation from GAAP as the banks account of Jupiter Ltd were found incomplete and no adequate records were traced out for depreciation of its fixed assets. The misstatement was found to be non-pervasive in nature.

Client 4: Pluto LTD

The summary of the Financial Statements of Pluto Ltd is as follows:

RO.

Assets

500000

Liabilities

300000

Equity

200000

Profit before Interest and Taxes

1000000

The materiality level of Pluto Ltd is 5% of the Assets and the misstatements with regard to Debtors are RO 30000. During the Audit Process ~The Audit Firm, ~ found many material misstatements which are pervasive in the financial statement of Pluto Ltd.

Answer the questions based on the case and the topic in general:

Question 41 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Pervasive misstatements affect: (Refer case 1)

a. Does not affect all elements of financial statements

b. None of the given options

c. May or may not affect

d. Affect all elements of financial statements

Question 42 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text The Audit opinion provided by the Audit Firm with regard to Pluto Ltd is: (Refer case 1)

a. Adverse opinion

b. None of the given options

c. Disclaimer opinion

d. Qualified opinion

Question 43 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Scope Limitations which is pervasive to financial statements results in:

a. Modified Opinion

b. Disclaimer Opinion

c. Adverse Opinion

d. None of the given options

Question 44 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Which of the following audit objectives ensure that, if the account receivable is pledged as security for a debt, such information should be revealed in the financial statements.

a. Validity

b. Disclosure

c. Accuracy

d. Completeness

Question 45 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text An Audit Report issued having no explanatory paragraph or modifications is:

a. Qualified Report

b. Adverse Report

c. None of the given options

d. UnQualified Report