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A note to the financial report of Greenflied Ltd refers to an agreement to sell...

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Accounting

A note to the financial report of Greenflied Ltd refers to an agreement to sell its major subsidiary, Bursa Valley Pty Ltd, to a rival wine company. This agreement was finalised the day before the financial report was to be signed and the sale is to take place a month after the audit report is to be signed. You have verified this transaction. However, when reviewing the Chairman's Review, which is to be included in the annual report that contains the audited financial report, you see that: a) plans for expanding Bursa Valley Pty Ltd's facilities are outlined. b) the additional revenue to be generated over the next ten years as a result of this expansion is tabulated; and c) there is no reference to the sale of Bursa Valley Pty Ltd. Management believe that it is too late to make any changes to the annual report, as it is ready to send to the printers, as soon as the audit report is signed. (2.75 marks each) (50- 80 words) Required:

For each independent situation, state the type of audit report that you should issue and give reasons for your answer

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