Tutorial 4

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T4 DAU 5014
Review Questions:
18-1
What are the basic elements in a standard auditors’ report on financial statements?
18-4
How does the materiality of a condition that might lead to a departure affect the auditor’s
choice of auditors’ reports?
18-7
How does an entity’s refusal to disclose information that is required by approved
accounting standards affect the auditors’ report?
MCQ’s:
18-18, 18-19, 18-20,18-21, 18-22, 18-23, 18-24, 18-26, 18-27
Extra Questions
1. The auditors know that the client’s accounting for income taxes is not in accordance
with generally accepted accounting principles, but because of a very significant scope
limitation, they have not been able to form an opinion on the financial statements as a
whole. What type of report should they issue?
2. The auditors believe that the financial statements have been presented in conformity
with GAAP in all respects, except that a loss contingency that should be disclosed

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