Independent Auditors’ Report Your client is a company that produces high quality palm oil (CPO) and palm kernel products. You find that the client has a capital deficiency arising from losses that occurred during the current year and several previous years. Besides that, there are many long-term liabilities that will mature in the next year, resulting in the client's current liabilities far exceeding their current assets. During the audit you did not find any material misstatements, the client management is very cooperative, easy to communicate, the client has reported the financial statements according to applicable standards, and also the sustainability report. Questions: According above situation, what kind of audit opinion, auditor should provide to the client? What kinds of auditor independents’ report will auditor provide (standard or modified)? Explain your answer!
Independent Auditors’ Report
Your client is a company that produces high quality palm oil (CPO) and palm kernel products. You find that the client has a capital deficiency arising from losses that occurred during the current year and several previous years. Besides that, there are many long-term liabilities that will mature in the next year, resulting in the client's current liabilities far exceeding their current assets. During the audit you did not find any material misstatements, the client management is very cooperative, easy to communicate, the client has reported the financial statements according to applicable standards, and also the sustainability report.
Questions:
According above situation, what kind of audit opinion, auditor should provide to the client? What kinds of auditor independents’ report will auditor provide (standard or modified)? Explain your answer!
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