Question 2: Assurance and Audit ReportingPeter Birch has approached you for advice on how...

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Accounting

Question 2: Assurance and Audit Reporting
Peter Birch has approached you for advice on how to interpret thenew style audit report that companies in which he has investmentsseem to be using. The reports all include a section labelled KeyAudit Issues. He is concerned that this means that the auditorshave issues with the financial statements. He also notes the auditsseem to be done by individuals rather than the audit firms he hasbeen happy to rely on in the past.
He also has questions about two audit reports he has read. One hasa section labelled Emphasis of Matter and one has a QualifiedOpinion due to a lack of audit evidence. He explains he is unsurewhat these reports mean and whether he can place any confidence inthe financial reports that the audit reports relate to.
Required:
a) Briefly explain the purpose of the key audit matters section ofthe audit report, including whether or not these matters indicateissues with the financial statements.

b) Briefly explain to Peter what the significance of the inclusionof the individual engagement partner’s name in the audit is.

c) Briefly explain the significance of the inclusion of an Emphasisof Matter paragraph in the audit report, including whether Petercan place reliance on the financial statements.

d) Briefly explain the significance of a qualified audit opinionissued due to a lack of evidence. Include in your explanation whatthis means for Peter and whether he can place any reliance on thefinancial statements.

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3.5 Ratings (302 Votes)

Ans a The evaluator will figure out which of the issues spoke with those accused of administration are the key review matters In making this assurance the reviewer will take into account territories of critical inspector consideration in playing out the review including Ref Para A1 A14 an Areas distinguished as critical See Answer

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In: AccountingQuestion 2: Assurance and Audit ReportingPeter Birch has approached you for advice on how to...Question 2: Assurance and Audit ReportingPeter Birch has approached you for advice on how to interpret thenew style audit report that companies in which he has investmentsseem to be using. The reports all include a section labelled KeyAudit Issues. He is concerned that this means that the auditorshave issues with the financial statements. He also notes the auditsseem to be done by individuals rather than the audit firms he hasbeen happy to rely on in the past.He also has questions about two audit reports he has read. One hasa section labelled Emphasis of Matter and one has a QualifiedOpinion due to a lack of audit evidence. He explains he is unsurewhat these reports mean and whether he can place any confidence inthe financial reports that the audit reports relate to.Required:a) Briefly explain the purpose of the key audit matters section ofthe audit report, including whether or not these matters indicateissues with the financial statements.b) Briefly explain to Peter what the significance of the inclusionof the individual engagement partner’s name in the audit is.c) Briefly explain the significance of the inclusion of an Emphasisof Matter paragraph in the audit report, including whether Petercan place reliance on the financial statements.d) Briefly explain the significance of a qualified audit opinionissued due to a lack of evidence. Include in your explanation whatthis means for Peter and whether he can place any reliance on thefinancial statements.