Question
You are auditing Duong Ltd for the year ended 30th June 2019. Duong is a supplier of technology equipment, and you have identified a material
You are auditing Duong Ltd for the year ended 30th June 2019. Duong is a supplier of technology equipment, and you have identified a material misstatement in the inventory account. Duong has not written a now obsolete product range down to the lower of cost and net realisable value as required by Australian Accounting standards. Furthermore, in the Chairmans Report it states the company has experienced a 5 per cent growth in market share over the past 12 months. This is inconsistent with your understanding of the business, and when you request a change be made to the Chairmans Report, management disagrees. Required: Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditors opinion for Duong for the year ended 30th June 2019. Justify all aspects of your response.
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