Reference no: EM132762648

Question: You are auditing Laksa Imports Ltd for the year ended 30th June 2020. The company is incorporated in Australia and imports a variety of food products from Malaysia. Consistent with previous years, Laksa accounts for inventory on a last-in, first-out (LIFO) basis, and has a policy of waiting until one month past the 'best before' date before writing stock down. Unfortunately the coronavirus pandemic has meant an end of year stocktake was not performed, and you have been unable to apply other procedures to validate the existence of the inventory at balance date.

Required: Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditor's opinion for Laksa Imports for the year ended 30th June 2020. Justify all aspects of your response.

You are in the final phase of the audit of Dakker Ltd for the year ended 30th June 2020. The company is incorporated in Australia, and develops and manages property across the eastern states. When conducting the review of the annual report, you notice that in the section "2020 Highlights" (page 2 of the annual report), the company has indicated it returned $5.3 billion to shareholders as dividends. Based on your knowledge of the financial report just audited, you know that this figure should be $5.1 billion. You have discussed the discrepancy with management, and they refuse to correct the error in the "2020 Highlights", citing the discrepancy as immaterial.

Required: Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditor's opinion for Laksa Imports for the year ended 30th June 2020. Justify all aspects of your response.