The following are three independent situation for each case state the type of audit opinion that should be expressed and provide a brief explanation to justify your choice
a) The auditors of how lie ltd were refused access to six months of the minutes of the directors meeting because they contained discussions of a highly confidential matter. no alternate procedures could be performed.
b) Due to the recent downturn in the Australian economy, scarlowie ltd has mane substantial losses or three quarters and now has a negative working capital balance. The auditor of that company has concerns over the entity’s ability to continue as a going concern in the short medium term. Mgmt og that company believe that company is fully solvent and have not disclose this matters in the financial statements.
c) Co large ltd has reported a net profit after tax of $5m which represents an increase of 25% oer the previous yea. however, the directors report states that increase in net profit from the prior year is more than 40%. As the annual report has been printed, the directors are not prepared to correct the error.
