Reference no: EM132643753

Question - You are the audit manager at Deloitte and you are finalising the audits for 30 June 2021. The following independent and material matters have come to your attention:

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

2. CARE Australia is a non-for-profit organisation and a non-reporting entity. In the last three years, you have been performing their audits in accordance with its constitution. The financial reports are prepared by another accounting firm on behalf of CARE Australia's board of directors, because CARE Australia does not have internal accounting expert to perform this function. During your review of the internal control structure, you acknowledged that CARE Australia did not have adequate controls over the collection of income to enable you to be satisfied that all income received was recorded. However, you have been satisfied that the organisation has accurately accounted for all income recorded.

Required - You are required to:

A) Identify the type of auditor's report to be issued for each of the above situations.

B) Justify your answer by discussing the relevant audit issues you have considered in forming your opinion.