What type of audit report would you issue and why

Assignment Help Auditing

Reference no: EM13184343

Imaginary Services Co Pty. Ltd started trading last year, and has undergone a recent surge of growth due to increased demand for their Imaginary Service. Your firm was appointed auditor for Imaginary Services Co Pty. Ltd in August 2010. As a result of this timing, you did not get the opportunity to observe the physical inventory count as of 30 June 2010 as it was done prior to your appointment. Owing to the nature of the company's records, you have not been able to satisfy yourself as to inventory quantities.

The inventory balance is material, however, you have found that controls over inventory are good, and that there is a low risk of misstatement for this asset. What type of audit report would you issue, and why?

If the company was Imaginary Consumables Co Pty Ltd, and the controls over inventory were not so good, would this affect the audit report, and why?

Reference no: EM13184343

Questions Cloud

Audit firm from accepting the engagement : The audit partner on this engagement for the last 3 years has been James Underwood and identify if any of the above would prevent the audit firm from accepting the engagement.

Explain what is the purpose of massing the watch glass : What is the purpose of massing the watch glass and Buchner funnel filter paper prior

Magnesium oxide decomposes into magnesium and oxygen : Magnesium oxide decomposes into magnesium and oxygen. If 12.09g of magnesium oxide decomposes to form 7.29g of magnesium, what mass of oxygen gas is also released in the reaction?

Personal jurisdiction under the minimum contacts test : What factors must be present for a state court to have personal jurisdiction under the minimum contacts test? Provide examples to support your answer.

What type of audit report would you issue and why : The inventory balance is material, however, you have found that controls over inventory are good, and that there is a low risk of misstatement for this asset. What type of audit report would you issue, and why?

Sequence of compounds from highest melting point to least : what would be the proper sequence for the following compounds to be listed from highest melting point to least?

How many units will the consumer buy in total : Suppose that individual demand for a product is given by QD = 8000 - 10P. Marginal revenue is MR = 800 - 0.2Q, and marginal cost is constant at $20. There are no fixed costs. The firm is considering a quantity discount. The first 300 units can be ..

Economic development-diplomacy-military action : America’s foreign policy during the 20th and 21st centuries and describe how it has evolved. Has economic development, diplomacy, military action, or a combination of these achieved the best results

Explain the impact that the pacific acceptance case : Explain the impact that the Pacific Acceptance case had on existing auditing practice and list four of the procedures or practices that were identified in the ruling as being part of a competent audit.

User Account

All Pages