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QUESTION 6 - (5 Marks) The following are independent situations for which you will recommend an appropriate auditor's report. Indicate which report you will issue

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QUESTION 6 - (5 Marks) The following are independent situations for which you will recommend an appropriate auditor's report. Indicate which report you will issue and give the reason why. A) A public accountant is engaged in the examination of the financial statements of a large manufacturing company with branch offices in many widely separate cities. The accountant was not able to count the substantial un-deposited cash receipts at the close of business on the last day of the fiscal year-end at all branch offices. As an alternative, the public accountant observed that deposits in transit as shown on the year-end bank reconciliation appeared as credits on the bank statement on the first day of business of the New Year. The public accountant was satisfied as to the cutoff of cash receipts by the use of alternative procedures. b) During the course of the examination of the financial statements of a corporation for the purpose of expressing an opinion on the statements, a public accountant is refused permission to inspect the minute books. The corporation secretary instead offers to give the public accountant a certified copy of all resolutions and actions relating to accounting matters

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