Q1) The notes to the financial statements of Kindred Co disclose that the company has only operated profitably as a result of a significant amount of trading with its parent company, and the auditor considers the disclosure appropriate. The financial statements have been prepared using the going concern basis of accounting.

What should the audit opinion on the financial statements of Kindred Co be?

Unmodified

Unmodified with a Material Uncertainty Related to Going Concern paragraph

Qualified 'except for'

Unmodified with an Emphasis of Matter paragraph

Q2) In what type of audit and assurance engagement would a report be issued which contains a statement of negative assurance on given assertions?

Review of prospective financial information.

Engagement to compile financial information.

Audit of historical financial information.

Engagement to perform agreed-upon procedures on financial information.