You are the auditor of a consolidated entity, a significant component of whose accounting records have been seized indefinitely by government authorities. Indicate whether this circumstance will require a modification to the auditor's opinion. Why? (4 marks)

(b) Working for Women Ltd is a non-profit entity. You have discovered that it has not kept substantiating vouchers or receipts for more than 65 per cent of its expenses, excluding salaries and allowances. (3 marks)

(c) While completing your audit work for the 30 June 2019 audit of Apollo Ltd, you become aware of the following material matters. Apollo Ltd has capitalised significant funds incurred in developing an improved new wine cap that allows the wine to continue to develop in the bottle. On 18 July 2020, Apollo Ltd applied for a patent for the cap, only to discover that a competitor had lodged a similar application on 12 June 2020. The granting of Apollo Ltd's patent application is now in serious doubt. Management do not believe any change to the financial report is required. (4 marks)

Required:

Assume that no adjustments are made. For each situation, identify the type of audit opinion required and explain the basis of your answers ( 11 marks)

ANSWER: