The client has a subsidiary in the USA and another in Canada, which this year together accounted for 8% of the group’s revenue, profits and net assets. Neither subsidiary is audited although both use external professional accountant to prepare the financial statements. We were unable to obtain any financial statements or accounting records of the two subsidiaries for our audit. The client’s management was unwilling to ask local accountants to perform a full audit. Q) Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
The client has a subsidiary in the USA and another in Canada, which this year together accounted for 8% of the group’s revenue, profits and net assets. Neither subsidiary is audited although both use external professional accountant to prepare the financial statements. We were unable to obtain any financial statements or accounting records of the two subsidiaries for our audit. The client’s management was unwilling to ask local accountants to perform a full audit. Q) Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
Chapter8: International Cases
Section8.1: Longtop Financial Technologies Limited
Problem 3Q
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The client has a subsidiary in the USA and another in Canada, which this year together accounted for 8% of the group’s revenue, profits and net assets. Neither subsidiary is audited although both use external professional accountant to prepare the financial statements. We were unable to obtain any financial statements or accounting records of the two subsidiaries for our audit. The client’s management was unwilling to ask local accountants to perform a full audit.
Q) Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
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