Module 19 Expand

Question 1

12 key elements of audit report?

Answer 1

Title
Addressee
Auditors opinion
Basis for opinion 
Conclusions relating to going concern
Other info 
Other reporting responsibilities 
Responsibilities of management 
Auditors responsibilities 
Signature of auditor
Address of auditor
Date of report

Question 2

What is an unmodified opinion?

Answer 2

Accounts give a true and fair view

Question 3

What is a modified opinion?

Answer 3

Do not give a true and fair view or auditor can’t form an opinion

Question 4

Types of modified audit opinions

Answer 4

Materially misstated:
Material but not pervasive : qualified
Material and pervasive : adverse

Inability to obtain evidence:
Material but not pervasive: qualified
Material and pervasive: disclaimer of opinion

Question 5

Limitation on scope may arise from? (Inability to obtain evidence)

Answer 5

Circumstance beyond control or entity
Circumstances relating to nature or timing or work
Limitations imposed by management p

Question 6

A matter can be?

Answer 6

Not material
Material
Material and pervasive

Question 7

An item is considered to be pervasive if?

Answer 7

Not confined to specific elements
Represent substantial proportion
Fundamental to users understanding (disclosures)

Question 8

Item is material if?

Answer 8

1% revenue
5% PBT
2% total assets

Directors remuneration (material by nature)