Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are also the audit manager for two audits which are nearing completion and the auditor's reports are due to be signed next week. Both

You are also the audit manager for two audits which are nearing completion and the auditor's reports are due to be signed next week. Both clients have a year-end of 31 March 20X5. The following issues have been left for your attention. Vale Co The Chair's report of Vale Co states that investment property rental forms a major part ofrevenue. However, a note to the financial statements shows that property rental represents only 1.6% of total revenue for the year. The audit senior is satisfied that the revenue figure in the financial statements is correct. The audit senior has proposed anunmodified audit opinion as the opinion does not extend to the Chair's report.9 Zenta Co Procedures on the audit of Zenta Co identified a transfer of cash from Harman Co 15April 20X5. The audit senior documented a discussion with the finance director of Zenta Co, who explained that Blush Co commenced trading on 4 April 20X5, afterbeing set up as a wholly-owned subsidiary of Zenta Co. The audit senior has proposed an unmodified opinion because the matter does not impact on the current year's financial statements.

Required:

Using practical examples of modified audit reports, critically appraise the audit senior's proposals for the auditors' reports of Vale Coand Zenta Co.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Sivaramakrishna, Ramji Balakrishnan

1st Edition

0471467855, 978-0471467854

More Books

Students also viewed these Accounting questions

Question

What is the work environment like? Friendly/collegial?

Answered: 1 week ago