Answer_to_questions_in_tutorial_10

Answer_to_questions_in_tutorial_10 - Answer to questions in...

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Answer to questions in tutorial 10 A: Multiple Choice Questions 1. ((b); 2. (c); 3. (d); 4. (c); 5. (b); 6.(a); 7. (d) B: Problem Solving 1. (a) There is a scope limitation concerning the observation of the taking of physical inventory. The auditor was not able to perform satisfactory alternative procedures in this case. (b) The Basis for … section would disclose details of the circumstances preventing the auditor from attending the stocktake. Since a ‘qualified’ opinion is expressed, circumstances beyond the control of the client and the auditor prevented the auditor observing the physical inventory. 2. a. There is a disagreement with management over compliance with accounting standards. b. A qualified opinion is appropriate. The lack of disclosure is material but not extreme. c. In our opinion, except for the effects on the financial report of the matter referred to in the Basis for … section, the financial report of … is in accordance with … 3. A contingent liability is a potential future obligation to an outside party for an
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Answer_to_questions_in_tutorial_10 - Answer to questions in...

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