Question 1

According to ASA 700 Forming an Opinion and Reporting on a Financial Report, an audit report must contain the following sections.

Title

Addressee

Auditor's Opinion

Basis for Opinion

Material Uncertainty Relating to Going Concern (where applicable)

Key Audit Matters

Other Information (where applicable)

Responsibilities for the Financial Statements

Auditor's Responsibilities

Other Reporting Responsibilities (where applicable)

Name, signature, address and date

Required:

briefly outline what each section communicates to the reader of the audit report, and state why it is important for the information to be so communicated.

Question 2

(a)Under what circumstances, and, where relevant, at what level of materiality, would an auditor provide each of the following audit opinions listed below?

(i)Unmodified opinion

(ii)Qualified opinion

(iii)Adverse opinion

(iv)Disclaimer of opinion

(b)Provide one example of a circumstance that would require an emphasis of matter paragraph to be included in an audit report, and one example of an other matter paragraph to be included in an audit report.

Question 3

With reference to the appropriate auditing standard(s) (Number of Standard and Paragraph), state the audit opinion, and any other information that you would include in the audit report. The first item has been completed as an example

1.Your client is a reporting entity and has prepared a General Purpose Financial Report. You are satisfied that the financial statements are prepared in accordance with the applicable financial reporting framework. However, you believe there are some going concern issues. Management agrees with you and has disclosed the issues in the financial statements.

2.Your client has prepared a Special Purpose Financial Report. You are satisfied that it states fairly the financial position and performance of the entity.

3.You completed the audit, and, with the exception of some inventory that you were unable to verify because it was held under the control of a third party, you believe that you have sufficient audit evidence on which to conclude that the financial statements have been prepared in accordance with the applicable financial reporting framework.

4.Your client is an Australian company that has prepared a General Purpose Financial Report. You are satisfied that the financial statements are prepared in accordance with the accounting standards, meet the requirements of the Corporations Act 2001 and provide a true and fair view. The client has early adopted AASB 16 Leases and has disclosed this in Note 1 to the Accounts.

Question 4

Compare and contrast the auditor's responsibilities in relation to subsequent events in the period between balance date and the date on which the audit report is signed; with those in the period after the audit report has been signed but before the date on which the financial report is issued. Support your answer by citing the appropriate references from ASA 560

Question 5

Why is it important for an auditor to obtain a management representation letter .Illustrateyour answer with two examples of issues that are covered in a management representation letter?