the auditor should give an adverse opinion
- D) the auditor should give an adverse opinion. The significant proportion of sales on cash which auditor is unable to test is pervasive. The financial statement is not prepared according to the applicable financial reporting framework. The auditor is unable to acquire samples to carry on audit tests.
e)the auditor should issue an unmodified opinion. The auditor is justified that the financial statement is prepared based on the materiality concept and following the underlined financial reporting procedures. The opening balance accounts are for the base year, which had already been audited. The information from the current year is enough evidence on a financial statement based on audit testing.
- f) The auditor should issue an adverse opinion. By not following the Australian Accounting Standard for the last five years is a serious occurrence. The opinion will protect the users of the financial statement not to rely on it in making decisions. Every company is obliged to prepare its financial report according to the relevant accounting standards and other financial reporting procedures.
g)the auditor should issue a qualified opinion. The LIFO method, though unacceptable by the accountant standards of Australia, did not affect the inventory’s materiality. The misstatement does not influence the financial statement, and it would not interfere with the user’s decision making.
- h) The auditor should issue an unmodified opinion. The auditor finds out that there are no material misstatements in the financial statement. The issue of clients’ continuation as agoing should be left to the management of the company. The matter should be addressed differently as an advisory service by explaining to the stakeholders the effect of individual customers.