Question
The outbreak of the Covid 19 pandemic in 2020 has different impacts on different companies. In performing the audit of the financial statements for most
The outbreak of the Covid 19 pandemic in 2020 has different impacts on different companies. In performing the audit of the financial statements for most of the companies in the year of 2020, the auditor un avoidably has to consider the impacts of the Covid 19 pandemic on the going concern of the companies.
Required:
(a) Give an example to describe the impacts of the Covid 19 pandemic on a company and
explain the specific circumstances under which an auditor sh ould issue an unmodified
audit report with an unmodified opinion.
(b) Give an example each to describe the impacts of the Covid 19 pandemic on a company and explain the specific circumstances under wh ich an auditor should issue an
unmodified opinion with
(i) an emphasis of matter ; and
(ii) material uncertainty related to going concern.
(c) Give an example each to describe the impacts of the Covid 19 pandem ic on a company and explain the specific circumstances under which an auditor should issue a modified audit report with
(i) a qualified opinion
(ii) a disclaimer of opinion ; and
(iii) an adverse opinion.
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