Reference no: EM132959377

Murray & Co., CPAs completed the audit of Classic Inc., a public entity, on March 1, 2019 for a January 31, 2019 fiscal year end. The audit team encountered no significant issues and found no material misstatements. Murray & Co. has audited Classic Inc. for several years and past audits did not reveal any significant issues or material misstatements. The audit team partner determined that a standard (unmodified) report on Classic Inc.'s financial statements was appropriate. The auditors' report, drafted by I.M. Nu, a staff assistant, is provided below. Audit ReportTo the Board of Directors and ShareholdersClassic, Inc. Report on the Audit of the Financial Statements Opinion In our opinion, the financial statements referred to above present fairly, the financial position of Classic, Inc. as of January 31, 2019 and the results of its operations and its cash flows for the year then ended. Basis for OpinionWe conducted our audit in accordance with Philippines Standards on Auditing (PSAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit MattersOur audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole. Our opinion on the financial statements is not modified with respect to any of the key audit matters described below, and we do not express an opinion on these individual matters. Valuation of Financial InstrumentsThe Company's disclosures about its structured financial instruments are included in Note 5. The Company's investments in structured financial instruments represent 25% of the total amount of its financial instruments.

• Because the valuation of the Company's structured financial instruments is not based on quoted prices in active markets, there is significant measurement uncertainty involved in this valuation. Going ConcernThe Company's financial statements have been prepared using the going concern basis of accounting. The use of this basis of accounting is appropriate unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Accounting Standards and Philippine Financial Reporting Standards. Auditor's Responsibilities for the Audit of the Financial StatementsOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain absolute assurance about whether the financial statements are free from material misstatement. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements

Based on the above information presented above, answer the following questions and indicate the supporting paragraph no. from PSA that will support your answer. Discuss each PSA par.

Question 1: What is the correct title of the report to be issued?

Question 2: Discuss Auditors responsibility section of the report.

Question 3: What should be the date of the report?

Question 4: The addressee of the report shall include?

Question 5: How should reasonable assurance be included in the report?