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You have been asked to review the following audit opinion: Adverse Opinion on the Financial Statements As more fully explained in note 10, the financial
You have been asked to review the following audit opinion: Adverse Opinion on the Financial Statements "As more fully explained in note 10, the financial statements include an amount of K96,192,840.00 representing the cost of the group's property, plant and equipment. No provision for impairment has been made against these assets and no valuation appraisal has been undertaken by the directors. Published information concerning comparable properties indicates very significant reductions in valuations have been experienced. In our opinion, these circumstances indicate that provision should be made for impairment in values as required by International Accounting Standard 36: Impairment of Assets. Whilst the extent of impairment is subject to factors whose outcome cannot be determined with certainty, based on information relating to comparable properties, the effect of its omission is likely to materially overstate the carrying value of the Group's assets at 31 December 2019; and understate its loss for the year then ended. In view of the effect of the failure to provide for the impairment referred to above, in our opinion the financial statements do not give a true and fair view, in accordance with ......." Required: Critically appraise the appropriateness of this audit opinion
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