4A2 - Report of Audited Financial Statements

Please solve all questions please

In which of the following paragraphs of an auditor's report for a nonissuer does an auditor communicate the nature of the engagement and the specific financial statements covered by the audit? A. Scope Paragraph B. opinion paragraph C. Introductory paragraph D. Emphasis-of-matter paragraph

Q. Identify the three types of modification to an auditor’sopinion on financial statements according to ISA705‘Modifications to the Opinion in the Independent Auditor’sReport’ and explain how these are determined.

Which may not be shown in an auditor's report of a non listed entity?  A. Auditor's address  B. Management responsibility paragraph  C. Key audit matters paragraph  D. Auditor's responsibility paragraph

S1: PSA 700 requires a strict order of the elements of an independent auditor's report S2: All audit reports should have a Key Audit Matters paragraph in accordance with PSA 701. S3: PSA 710 defines corresponding figures as amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework    O S1 and S2 are true  O S2 and S3 are true  O All statements are true  O All statements are false

Q. Explain how the three types of modification to an auditor’sopinion on financial statements according to ISA705‘Modifications to the Opinion in the Independent Auditor’sReport’  are determined.

Subject- Audit SUMMARIZE THE CORE ISSUES for the following topic:- • ISA 805, Special Considerations–Audits of Single Financial Statements and. Specific Elements, Accounts or Items of a Financial Statement

Question 3 When component auditors are involved in the audit of group financial statements the group auditors may issue a report that:     Refers to the component auditors, describes the extent of the component auditor's work and expresses an unqualified opinion.     Does not consider or evaluate the component auditor's work but express an unqualified opinion in a standard report.     Places primary responsibility for the reporting on the component auditors.     Names the component auditors, describes their work and presents only the group auditors report.

S1: lf an auditor's report on the prior period included a modified opinion and the matter which gave rise to the modification is unresolved, the auditor's opinion on the prior period's financial statements should be modified. S2: The auditor's opinion on comparative financial statements should refer to each period for which financial statements are presented and on which an audit opinion is expressed. S3: Reference to the work of an auditor's expert in an auditor's report containing an unmodified opinion unless required by law or regulation to do so.    O S1 and S2 are true  O S2 and S3 are true  O All statements are true  O All statements are false

Identify the three types of modification to an auditor’sopinion on financial statements according to ISA705‘Modifications to the Opinion in the Independent Auditor’sReport’ and please explain how they are determined.

When a client has a going concern issue, .AU-C 570 The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern requires an _______.      emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph     an emphasis-of-matter paragraph be added to the unmodified report, afterthe opinion paragraph     an explanatory paragraph be added to the unmodified report, after the opinion paragraph     an explanatory paragraph be added to the unmodified report, before the opinion paragraph Sometimes an audit population may be sufficiently small so that_______.     the auditor can ignore the account in question     the auditor can audit every item in the population     the account in question can be outsourced to the internal audit function for auditing     expressed written assurance from senior management pertaining to the account is satisfactory A Type II subsequent event…

s1: The auditor's report on the group financial statements shall not refer to a component auditor, unless required by law or regulation to include such reference S2. The auditor shall not refer to the work of an auditor's expert in an auditors report containing an unmodified opinion unless required by law or regulation to do so.    O S1 is True, S2 is False  O S1 is False, S2 is True  O Both statements are True  O Both statements are False