Draft audit report for the year ended

Reference no: EM133475014

Question: You are the auditor of Matatizo Company Limited. The company is listed in the Stock exchange and is involved in importation and wholesaling of furniture. The company faces strong competition in the market and is incurring losses. The wind of competition is from local fundi whose prices are relatively cheaper. Balaa Ltd is a wholly owned subsidiary of Matatizo Ltd. Balaa is involved in the local production of furniture. Although initially profitable, Balaa has recorded an operating loss during the current financial year. Sufficient appropriate audit evidence gather during the audit of Matatizo Ltd for the year ending 31 Dec 2022 indicated the following:

(a) The company proposed to offer shares in 15 May 2023. The details of the offer are disclosed in the Directors Report. The ability of the company to continue as a going concern depends on how the public will respond to the proposed offer. Directors of Matatizo Ltd has prepared the financial statement on a going concern basis.

(b) The banker of Matatizo Ltd requires the audited financial statements not later than 15 April 2023.

(c) At the date of your audit report, you were unable to establish how the public will respond to the proposed share offer in 15 May 2023.

(d) No other circumstance have come to your attention that would cause you to modify the report.

Required: Draft audit report for the year ended 31 Dec 2023 based on the above evidence.

Reference no: EM133475014

Questions Cloud

Discussed the development and adjustment of children of gay : discussed the development and adjustment of children of gay and lesbian parents in the article, Children of lesbian and gay parents: Psychology, law and policy.

What is the price of call option with same strike price : The risk-free rate is 4.6 percent and the stock will pay a $2.70 dividend in two months. What is the price of a call option with the same strike price?

Address a current challenge effecting recreation : LEI 3703- You are to address a current challenge effecting recreation and leisure service providers related to past or current problems or issues.

Miller Manufacturing has target debt-equity ratio : Miller Manufacturing has a target debt-equity ratio of .40. Its cost of equity 11.8 percent and its cost of debt is 6.5 percent.

Draft audit report for the year ended : At the date of your audit report, you were unable to establish how the public will respond to the proposed share offer in 15 May 2023

What do you think makes a good story : Do you have any observations about whether your choice passes or not? What do you think makes a good story?

What is propaganda and how does it work : What is propaganda and how does it work? What should you do when you hear or see propaganda? - How can art be used as propaganda? Can you give current

Netflix acquires customers : The main way that Netflix acquires customers is through the one-free-month offers inserted in new DVD players.

Read and review the lesson notes below on the fiction essa : Read and review the Lesson notes below on "The Fiction Essa" Read and review the guide and resources included below

User Account

All Pages