" In our opinion, the financial statements give a true and fair view of the state of the Company's affairs and have been properly prepared in accordance with the Hong Kong Companies Ordinance. " Q: The auditor found that a client has switched the inventory valuation method from weighted average method used last year to First-in-first-out method this year, and the effect is material to this year's financial statements. (i) What should the auditor consider when deciding on the suitable opinion? (ii) Suggest the possible opinions and explain the situations that give rise to each opinion.
" In our opinion, the financial statements give a true and fair view of the state of the Company's affairs and have been properly prepared in accordance with the Hong Kong Companies Ordinance. " Q: The auditor found that a client has switched the inventory valuation method from weighted average method used last year to First-in-first-out method this year, and the effect is material to this year's financial statements. (i) What should the auditor consider when deciding on the suitable opinion? (ii) Suggest the possible opinions and explain the situations that give rise to each opinion.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 39RSCQ
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" In our opinion, the financial statements give a true and fair view of the state of the Company's affairs and have been properly prepared in accordance with the Hong Kong Companies Ordinance. "
Q:
The auditor found that a client has switched the
(i) What should the auditor consider when deciding on the suitable opinion?
(ii) Suggest the possible opinions and explain the situations that give rise to each opinion.
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