Bludger Ltd's Auditors Were Appointed After the End of the Financial

question 3

Essay

Bludger Ltd's auditors were appointed after the end of the financial year and discovered that the company had also changed banks shortly after the year end. The directors refused permission for the auditors to contact the previous bankers for confirmation of the year end bank balance without giving any good reason. The total of net current assets was £1.2m of which the bank balance amounted to £123,000 overdrawn.
Which of the following options should the auditors take when considering their audit report?

Not modified
Modified
‘Except for’ – limitation of audit scope
Except for – material disagreement
Disclaimer – pervasive limitation of audit scope
Adverse opinion – pervasive disagreement

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Definitions:

Chromosomes

Structures within cells that contain DNA and carry genetic information necessary for reproduction and growth.

Mitotic Division

A process of cell division that results in two genetically identical daughter cells from a single parent cell.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, as in the production of gametes.

Cell Cycle

The series of events that take place in a cell leading to its division and duplication, including interphase, mitosis, and cytokinesis.