Reference no: EM133006054

Question - Consider the following independent material scenarios. Assume that all entities involved have a year-end of 30 June 2021.

(i) Doubt about the entity's ability to continue as a going concern is fully disclosed in the notes to the financial statements.

(ii) Applicable accounting standards have been adopted, but additional disclosures have been made to keep the financial statements from being misleading.

(iii) The auditor has an extremely material client-imposed scope limitation.

(iv) The names of the controlled entities for which you have not acted as auditor are disclosed.

(v) The company changed its method of calculating depreciation. This is in accordance with accounting standards, and the nature, reason and financial effects of the change are disclosed in a note to the financial statements.

(vi) Due to the widespread and remote location of inventories, your firm did not attend the annual stocktake of TTT Pty Limited. The inventory balance constitutes 27 per cent of total assets. You were unable to perform appropriate alternative audit procedures.

(vii) The representation letter from the client's lawyers reveal that the company is being sued by a major customer for a material amount. The legal action relates to an event in a prior year. Your client is very confident of winning the case and refuses to disclose it in the financial report.

(viii) Prime Limited's financial report does not disclose certain long-term lease obligations. The auditor determines that the omitted disclosures are required by AASB 16 'Leases'.

Required - For each of the above situations (i-viii), determine the appropriate audit opinion to be issued. Give reasons.