Reference no: EM132469068

Point 1: Golddiggers Pty Ltd, is a family run business, operating a small goldmine. The board is represented by Mr Smith and his sister, Ms Smith, who are also the predominant shareholders. In the final audit meeting, Ms Smith has told you she suspects that the vein they are presently mining will last 13 months at the least to 17 months at the most. She has also noted that after they extract the gold they will close the business, let the license expire and retire to Goldfields-Esperance. Ms Smith then showed you a land-surveyor's report confirming her statement regarding the amount of gold in the vein. This information has not been disclosed in the financial report.

Question 1: Identify the type of auditor's report to be issued for each of the above situations and Justify your answer by discussing the relevant audit issues you have considered in forming your opinion