Which of the following statements relating to an auditor's responsibilities relating to their client's ability to continue as a going concern ismost correct?(give detailed explanations to both selections)

A.If the auditor believes that there is a material uncertainty as to their client's ability to continue as a going concern, but the client does not appropriately disclose this in their financial statements, the auditor must include a 'Material Uncertainty Relating to Going Concern' paragraph in their audit report.

B.If the client prepares their financial statements using the going concern basis, but the auditor believes that this is definitely wrong and the client is not a going concern, the auditor should issue an adverse opinion.

Which of the following statements relating to Key Audit Matters ismost correct?(give detailed explanations to both selections)

A.The reporting of Key Audit Matters in the Auditor's Report is likely to assist in reducing the audit expectations gap.

B.Key audit matters in the Auditor's Report allows auditors to elaborate on matters that have resulted in a modified audit opinion.

Which of the following audit opinions ismost appropriate, given the circumstances described?(give detailed explanations to both selections)

A.The auditor has formed a belief that inventory is materially misstated meaning that inventory in the Balance Sheet is overstated and Cost of Sales is understated. These are the only material misstatements. The auditor issues a qualified audit opinion.

B.The auditor was not permitted by their client to send accounts receivable confirmations. The balance of accounts receivable is material. Although there are alternate procedures available, the auditor chooses not to employ these alternate procedures and issues a qualified audit opinion.

Which of the following statements relating to an auditor's responsibility for events occurring subsequent to balance date ismost correct?(give detailed explanations to both selections)

A.Auditors have no responsibility for events occurring subsequent to the date of the auditor's report.

B.If the auditor identifies a material non-adjusting event subsequent to balance date but before the date of the auditor's report, and management do not agree to disclose this in the financial statements, the auditor should issue a qualified audit opinion.

Which of the following statements relating to Emphasis of Matter and Other Matter paragraphs ismost correct?(give detailed explanations to both selections)

A.Readers of auditor reports can use the information reported in an Emphasis of Matter paragraph (if included in the auditor's report) to focus their attention on important matters in the financial statements.

B.Readers of auditor reports can use the information reported in an Emphasis of Matter paragraph(if included in the auditor's report) to further understand the implications of a Key Audit Matter.