Prepare the accompanying solution shot to reply to the eight independent situations below that relate to the audit of financial statements of nonpublic companies. Do not consider including an emphasis-of-matter paragraph in an auditor discretionary citcumstance. 4) A client's investment in its joint operation XYZ Company is curred at 100 million on the Group's consolidated statement of financial position, which represents over 90% of the Group's net assets an at 31 December 20X1. However, the editor is not allowed access to the Board of Directors and the auditors or XYZ Company, including XYZ Company's auditors and documentation. As a result, the auditor is unable to determine whether any adjustments are necessary in respect of the Group's share of XYZ Company's assets that it controls jointly. its share of XYZ Company's liabilities for which it is jointly responsible, its share of XYZ's income and expenses for the year, and the elements making up the consolidated statement of changes in equity and the consolidated cash flow statement. The possible effects of these adjustments are deemed to be both material and pervasive to the financial statements o client introduces a new computered accounts receivable system resulted in numerous erros in accounts receivable. As of the date of the auditor's report, the Board of Directors is still in the process of rectifying the system deficiencies and correcting the res. The auditor is able to confirm or verily by alternative audit procedures the accounts receivable included in the statement of financial position at the reporting date. For each of the above situation, assume a) The auditor is independent b) The editor previously expressed an unmodified opinion on the prior year's financial statements, c) Only single-year (not comparative statements are presented for the current year . The conditions for an unmodified option exist unless contradicted by the facts c) The conditions stated in the items to be answered are material, unless otherwise indicated 1 Each item to be answered is independent of the others No report modifications are to be made except in response to the factual situation. h) The auditor will not trata situation as an emphases of a matter in what remains an unmodified audit report unless it is one of those circumstances specifically illustrated in the Professional Standards an example of a matter an auditor may wish to emphasize 1) Financial statements of the clients are prepared in according with accounting principles generally accepted in the United States of America, j) Theodor conduct andit in accordance with auditing standards generally accepted in the United States of America If more than one type of opinion is appropriate, list each one with "Report" and one with "Report 2 For example, if the problem doesn't tell you whether a misstatement pervasively misstates the financial statements et des list a characteristic that indicates pervasiveness, two reports may be possible. If only "Report 1" is appropriate, place an "X" in the "Report 2" Opinion Type cell, which indicates the second type of roport is appropriate M HO ERO sing Assignment 2021 Solution Sheet Types of pinion Circumstance Reportaron Report Report 2 Report 2 Prepare the accompanying solution sheet to reply to the eight independent situations below that relate to the audit of financial statements of nonpublic companies. Do not consider including an emphasis-of-matter paragraph in an "auditor discretionary" circumstance. 4) A client's investment in its joint operations XYZ Company is carried at 100 million on the Groups consolidated statement of financial position, which represents over 90% of the Group's net assets as at 31 December 20X1. However, the auditor is not allowed access to the Board of Directors and the auditors of XYZ Company, including XYZ Company's auditors' audit documentation. As a result, the auditor is unable to determine whether any adjustments are necessary in respect of the Group's share of XYZ Company's assets that it controls jointly, its share of XYZ Company's liabilities for which it is jointly responsible, its share of XYZ's income and expenses for the year, and the elements making up the consolidated statement of changes in equity and the consolidated cash flow statement. The possible effects of these adjustments are deemed to be both material and pervasive to the financial statements. 6) A client introduces a new computerized accounts receivable system resulted in numerous crrors in accounts receivable. As of the date of the auditor's report, the Board of Directors is still in the process of rectifying the system deficiencies and correcting the errors. The auditor is unable to confirm or verify by alternative audit procedures the accounts receivable included in the statement of financial position at the reporting date. For each of the above situation, assume: a) The auditor is independent. b) The auditor previously expressed an unmodified opinion on the prior year's financial statements. c) Only single-year (not comparative) statements are presented for the current year. d) The conditions for an unmodified opinion exist unless contradicted by the facts. C) The conditions stated in the items to be answered are material, unless otherwise indicated. f) Each item to be answered is independent of the others g) No report modifications are to be made except in response to the factual situation. h) The auditor will not treat a situation as an emphasis of a matter in what remains an unmodified audit report unless it is one of those circumstances specifically illustrated in the Professional Standards as an example of a matter an auditor may wish to emphasize. i) Financial statements of the clients are prepared in according with accounting principles generally accepted in the United States of America. j) The auditor conduct audit in accordance with auditing standards generally accepted in the United States of America If more than one type of opinion is appropriate, list each one with "Report 1" and one with "Report 2." For example, if the problem doesn't tell you whether a misstatement pervasively misstates the financial statements or doesn't list a characteristic that indicates pervasiveness, two reports may be possible. If only "Report 1" is appropriate place an "X" in the "Report 2" Opinion Type cell, which indicates no second type of report is appropriate. Prepare the accompanying solution shot to reply to the eight independent situations below that relate to the audit of financial statements of nonpublic companies. Do not consider including an emphasis-of-matter paragraph in an auditor discretionary citcumstance. 4) A client's investment in its joint operation XYZ Company is curred at 100 million on the Group's consolidated statement of financial position, which represents over 90% of the Group's net assets an at 31 December 20X1. However, the editor is not allowed access to the Board of Directors and the auditors or XYZ Company, including XYZ Company's auditors and documentation. As a result, the auditor is unable to determine whether any adjustments are necessary in respect of the Group's share of XYZ Company's assets that it controls jointly. its share of XYZ Company's liabilities for which it is jointly responsible, its share of XYZ's income and expenses for the year, and the elements making up the consolidated statement of changes in equity and the consolidated cash flow statement. The possible effects of these adjustments are deemed to be both material and pervasive to the financial statements o client introduces a new computered accounts receivable system resulted in numerous erros in accounts receivable. As of the date of the auditor's report, the Board of Directors is still in the process of rectifying the system deficiencies and correcting the res. The auditor is able to confirm or verily by alternative audit procedures the accounts receivable included in the statement of financial position at the reporting date. For each of the above situation, assume a) The auditor is independent b) The editor previously expressed an unmodified opinion on the prior year's financial statements, c) Only single-year (not comparative statements are presented for the current year . The conditions for an unmodified option exist unless contradicted by the facts c) The conditions stated in the items to be answered are material, unless otherwise indicated 1 Each item to be answered is independent of the others No report modifications are to be made except in response to the factual situation. h) The auditor will not trata situation as an emphases of a matter in what remains an unmodified audit report unless it is one of those circumstances specifically illustrated in the Professional Standards an example of a matter an auditor may wish to emphasize 1) Financial statements of the clients are prepared in according with accounting principles generally accepted in the United States of America, j) Theodor conduct andit in accordance with auditing standards generally accepted in the United States of America If more than one type of opinion is appropriate, list each one with "Report" and one with "Report 2 For example, if the problem doesn't tell you whether a misstatement pervasively misstates the financial statements et des list a characteristic that indicates pervasiveness, two reports may be possible. If only "Report 1" is appropriate, place an "X" in the "Report 2" Opinion Type cell, which indicates the second type of roport is appropriate M HO ERO sing Assignment 2021 Solution Sheet Types of pinion Circumstance Reportaron Report Report 2 Report 2 Prepare the accompanying solution sheet to reply to the eight independent situations below that relate to the audit of financial statements of nonpublic companies. Do not consider including an emphasis-of-matter paragraph in an "auditor discretionary" circumstance. 4) A client's investment in its joint operations XYZ Company is carried at 100 million on the Groups consolidated statement of financial position, which represents over 90% of the Group's net assets as at 31 December 20X1. However, the auditor is not allowed access to the Board of Directors and the auditors of XYZ Company, including XYZ Company's auditors' audit documentation. As a result, the auditor is unable to determine whether any adjustments are necessary in respect of the Group's share of XYZ Company's assets that it controls jointly, its share of XYZ Company's liabilities for which it is jointly responsible, its share of XYZ's income and expenses for the year, and the elements making up the consolidated statement of changes in equity and the consolidated cash flow statement. The possible effects of these adjustments are deemed to be both material and pervasive to the financial statements. 6) A client introduces a new computerized accounts receivable system resulted in numerous crrors in accounts receivable. As of the date of the auditor's report, the Board of Directors is still in the process of rectifying the system deficiencies and correcting the errors. The auditor is unable to confirm or verify by alternative audit procedures the accounts receivable included in the statement of financial position at the reporting date. For each of the above situation, assume: a) The auditor is independent. b) The auditor previously expressed an unmodified opinion on the prior year's financial statements. c) Only single-year (not comparative) statements are presented for the current year. d) The conditions for an unmodified opinion exist unless contradicted by the facts. C) The conditions stated in the items to be answered are material, unless otherwise indicated. f) Each item to be answered is independent of the others g) No report modifications are to be made except in response to the factual situation. h) The auditor will not treat a situation as an emphasis of a matter in what remains an unmodified audit report unless it is one of those circumstances specifically illustrated in the Professional Standards as an example of a matter an auditor may wish to emphasize. i) Financial statements of the clients are prepared in according with accounting principles generally accepted in the United States of America. j) The auditor conduct audit in accordance with auditing standards generally accepted in the United States of America If more than one type of opinion is appropriate, list each one with "Report 1" and one with "Report 2." For example, if the problem doesn't tell you whether a misstatement pervasively misstates the financial statements or doesn't list a characteristic that indicates pervasiveness, two reports may be possible. If only "Report 1" is appropriate place an "X" in the "Report 2" Opinion Type cell, which indicates no second type of report is appropriate