Question
the following re three indepenedent situation for each case state the type of audit opinion that should be expessed and provide a brief explanaton to
the following re three indepenedent situation for each case state the type of audit opinion that should be expessed and provide a brief explanaton to justify your choice
a) the auditors of howlieltd were refused access to six months of the minutes of the directors meeting because they contained discussions of a highly confidential matter. no alternatie procedures could be performed.
b) due to the recent downturn in the austraklian economy, scarlowie ltd has maae substantial lossess or three qurters and now has a negative working capital balance. the auditorof that company hs concerns over the entitys ability to continue as a going concern in the short medium term. mgmt og that copany beleive that company is fully solvent and have not disclose this matters in the financial statements.
c)colarge ltd has reported aa net profit after tax of $5m which represents an increase of 25% oer the previous yea. however,the directors report states that inccrease in net profit from the prior year is more than 40%. as the annuaal repot has been printed,the directors are not prepared to correct the errror
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