2 Intro To Audit Services And FS Audit

Question 1

C2
Auditor’s judgement about the Pervasiveness of the Effects or Possible Effects on the FS

Circumstances:
1. FS are materially misstated:
Material but not pervasive - what type of opinion?
Material and Pervasive - ?

2. Inability to obtain sufficient appropriate audit evidence
   Material but not pervasive - ?
   Material and Pervasive - ?

Answer 1

1. FS are materially misstated:
   Material but not pervasive - Qualified Opinion (except for)
   Material and Pervasive - Adverse
2. Inability to obtain sufficient appropriate audit evidence
   Material but not pervasive - Qualified Opinion (except for)
   Material and Pervasive - Disclaimer of opinion

Question 2

C2
Explain suitable critera

Answer 2

Criteria used in audit of FS generally include the PFRS, GAAP, and other applicable financial reporting framework