You are about to issue the auditor’s report for Ayewaso Company Ltd, a listed client. Halfway through the year the company suffered a major computer systems failure which destroyed the accounting records for the year to date. Backups have not been kept so the company has had to reconstruct the figures for the first six months.

1. Which opinions are most appropriate for Ayewaso Company Ltd?
A. Qualified or adverse
B. Unmodified or adverse
C. Unmodified or disclaimer
D. Qualified or disclaimer

2. What is the purpose of the Basis of Opinion paragraph in an auditor’s report which contains an unmodified opinion?
A. To state the opinion on the financial statements
B. To confirm the audit has been conducted in accordance with ISAs and ethical
requirements
C. To highlight a material uncertainty relating to going concern which has been
adequately disclosed
D. To highlight management responsibilities to the users of the financial statements

3. Which of the following shows the correct order of the elements to be included in the auditor’s report of Ayewaso Company Ltd?
A. Opinion, date, auditors address, signature
B. Title, opinion, signature, key audit matters
C. Addressee, opinion, auditor’s responsibilities, date
D. Responsibilities of management, basis for opinion, date, addressee

4. Which of the following describe the wording of a disclaimer of opinion?
A. The financial statements give a true and fair view
B. The financial statements do not give a true and fair view
C. The auditor does not express an opinion on the financial statements
D. Except for the matter described, the financial statements give a true and fair view

5. Which of the following could NEVER be the responsibility of an internal auditor?
A. Risk management
B. Organizational control
C. Corporate governance
D. Audit report to shareholders