Reference no: EM132959171
Question - Cyprus LLP (Cyprus) is in the process of wrapping up an audit of the financial statements of Zeeman Brothers (Zeeman), a publicly registered company. Below are some audit notes made by Cyprus:
-Cyprus did not have any issues when it came to its independence on the audit engagement
-Zeeman did not materially violate generally accepted accounting principles
-Cyprus did have doubts about Zeeman remaining a going concern
-Apart from a key disclosure that was omitted by Zeeman Brothers, all disclosures were adequate. Upon recommendation by Cyprus, Zeeman agreed to make the necessary correction.
-There was no change in accounting principles that had a material effect on Zeeman's financial statements
-Cyprus was able to perform all necessary procedures
a. What audit opinion is appropriate given the notes above?
b. Explain your rationale for the audit opinion given the notes above?
c. Generally, what are the conditions that warrant the auditor to issue the opinion in your response in (a) above?
-Calanday & Associates (Calanday) has been assigned to audit the financial statements of Seasons Greetings Ltd. Calanday was notified by the Management of Seasons Greetings that the earthquake that had impacted the neighboring country four months ago had caused two of its manufacturing plans to completely collapse. Fortunately, there were no human casualties.
Outline and explain at least 5 general procedures Calanday can perform after learning about this incident.
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