Question 19 Reporting [10 marks] LEVEL 1 The International Standard on Auditing (ISA) 700 (forming an opinion and reporting on financial statement) states that an auditor should form an opinion on the financial statement based on the evaluation of the conclusion drawn from the audit evidence. REQUIRED Consider whether the following statements are true or false, and if false, motivate your answer. The auditor shall evaluate whether: 1. the financial statements adequately disclose the significant accounting policies selected and applied sufficient appropriate audit evidence has been obtained 2. 3. the accounting policies selected and applied are consistent with the applicable financial reporting 4. 5. framework and are appropriate all material events occurring 12 months after the reporting date have been appropriately dealt with all qualitative aspects of the entity's accounting practices, including indicators of possible bias in management judgement, have been considered the information presented in the financial statements is relevant, material, complete and understandable 7. all misstatements (including clearly trivial misstatements) which have been identified during the audit result in a material misstatement of financial information 8. the financial statements, including the related notes, represent the underlying transactions and events in a manner that achieves reasonable presentation the accounting estimates made by management are reasonable 10. the terminology used in the financial statements is appropriate. [10]

The International Standard on Auditing (ISA) 700 (forming an opinion and reporting on financial statement) states that an auditor should form an opinion on the financial statement based on the evaluation of the conclusion drawn from the audit evidence. REQUIRED Consider whether the following statements are true or false, and if false, motivate your answer. The auditor shall evaluate whether: 1. the financial statements adequately disclose the significant accounting policies selected and applied 2. sufficient appropriate audit evidence has been obtained 3. the accounting policies selected and applied are consistent with the applicable financial reporting framework and are appropriate 4. all material events occurring 12 months after the reporting date have been appropriately dealt with 5. all qualitative aspects of the entity's accounting practices, including indicators of possible bias in management judgement, have been considered 6. the information presented in the financial statements is relevant, material, complete and understandable 7. all misstatements (including clearly trivial misstatements) which have been identified during the audit result in a material misstatement of financial information 8. the financial statements, including the related notes, represent the underlying transactions and events in a manner that achieves reasonable presentation 9. the accounting estimates made by management are reasonable 10. the terminology used in the financial statements is appropriate. [10]