Due to Time and Staff Restrictions the Auditor Was Unable

question 21

Multiple Choice

Due to time and staff restrictions the auditor was unable to attend the inventory stocktake at a remote branch location for Outback Ltd. The inventory at this site accounted for 30% of total assets. Alternative procedures were applied
Satisfactorily. The auditor should issue:

• A) an unmodified opinion.
• B) an unmodified opinion with an Emphasis of Matter.
• C) a disclaimer of opinion.
• D) a qualified opinion.

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Definitions:

Future Values

The value of an asset or amount of money at a specific point in the future, considering factors like interest rates and compounding periods.

Annuities

Financial products that provide a series of payments over time, often used as part of retirement planning.

Future Values

The estimated value of an investment or asset at a specific date in the future, considering factors like interest rates or returns.

Sinking Fund

A fund of deposits made by the issuer of a corporate or government bond and managed by a neutral third party in order to ultimately pay off a bond.