If an auditor is engaged to audit a client’s financial statements after the annual physical inventory count was made and the accounting records are not sufficiently reliable to enable the auditor to become satisfied as to the year-end inventory balances, the opinion to be expressed is

Q: ecause of inadequate records the auditor is uncertain as to whether the company’s major investment…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Eagle Company, a public company, had a computer failure and lost part of its financial data As a…

A: The scenario involves Eagle Company, a public company, experiencing a computer failure that resulted…

Q: What type of substantive testing (not test of controls) should be used for each of the following…

A: Substantive  testing is also known as substantive procedures, which are the procedures an auditor…

Q: A limitation on the scope of the auditor’s examination sufficient to preclude an unqualified opinion…

A: The question is asking about a situation where the management's actions would limit the scope of the…

Q: The auditor computed inventory turnover and compared it to prior years.  This substantive test…

A: Auditing inventory refers to cross-checking the physical inventory with the inventory reported in…

Q: 1)Which of the following is not an audit procedure for inventories? a)Review cut-off of inventory…

A: The objective of the first question is to identify the option that is not an audit procedure for…

Q: Ques: 15 Due to a conflict of interest discovered between another audit firm and Jamal Corp., your…

A: The auditing in a company is very important to prepare the financial statements of the company in a…

Q: The auditors determined that the entity is suffering financial difficulty and its going concern…

A: Unmodified Opinion is given by the auditor when all the financial statements are presented fairly in…

Q: A client uses percentages of aging categories to calculate the allowance for doubtful accounts.…

A: The business entities are required to audit their financial statements so as to know whether the…

Q: If a material exception relates to a departure from PFRSs, the auditor may issue either: A.…

A: Solution: If a material exception relates to a departure from PFRSs, the auditor may issue either…

Q: Question 4 Respond to each of the following independent situations involving auditor reports. For…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: True or False Prior years' financial statements are not restated when the prospective approach is…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: When auditing merchandise inventory at year-end, the auditor performs audit proceduresto obtain…

A: Given information is: When auditing merchandise inventory at year-end, the auditor performs audit…

Q: Which of the following circumstances requires the modification of both the auditor’s responsibility,…

A: Answer: Whenever there is no cooperation from management and limitation to audit, there is always…

Q: The audit objective that all journal entries were included in the financial statements is related to…

A: These assertions are made by the management. These are the claims regarding certain aspects of the…

Q: " In our opinion, the financial statements give a true and fair view of the state of the Company's…

A: An auditor is required to verify and check the accuracy of the financial records of the business. He…

Q: The accounts in the working trial balance are usually the summary accounts to appear in the…

A: A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into…

Q: Determine what report (unqualified, qualified, adverse, or disclaimer) is appropriate Your client…

A: Unqualified Opinion with an additional explanatory paragraph