Question 1.

What matters must an auditor request management to include in Management Representation Letter under paragraphs 10 and 11 of ASA 580?

Question 2.

What is the evidentiary value of a Management Representation lLtter?

Question 3

Under what circumstances is an auditor required to provide an unmodified audit opinion?

Question 4.

State the audit opinion that is required in each of the following circumstances and levels of materiality:

(i)Circumstance:The auditor is unable to obtain sufficient appropriate evidence concerning sales and inventory levels.

Level of materiality:Material and pervasive.

(ii)Circumstance: The auditor and management disagree about the application of accounting policies.

Level of materiality: Material and pervasive.

(iii)Circumstance:The auditor and management disagree about a disclosure.

Level of materiality: Material but not pervasive

(iv)Circumstance: The auditor is unable to obtain sufficient appropriate evidence concerning the client's depreciation expense.

Level of materiality: Material but not pervasive.

Question 5.

What is the title of the additional paragraph that must be included in the audit report in each of the following circumstances?

(i) The financial statements are Special Purpose Financial Statements

(ii) The client has adopted early a new accounting standard as permitted by the AASB.

(iii) This is the first time that the financial statements have been audited.

(iv) The auditor believes that there is significant uncertainty about the outcome of a regulatory action.

Question 6.

Answer the following questions:

(i) To whom is the audit report addressed?

(ii) True or False? Any matter that is the subject of an Emphasis of Matter paragraph must be communicated by the auditor to Those Charged With Governance as a Key Audit Matter.

(iii) Under what circumstances would an auditor include reference to Going Concern in the body of the audit report?