12.

19

The impact of the situation on the auditors ‘s opinions is as follows:

+ There is a disagreement between the auditor and the BML’s Directors regarding the application of
an accounting standard.

+ Auditor should experess qualified opinion because the disagreement is material, though it does not
pervasive as if affects only property, plant and equipment account. The auditos ‘s opinon should cite
the the accouting standard and quantify the financial effects of the disagreement.

+ However auditor doesn’t have sufficient evidence to conclude this situation is pervasive.

12.23

Situations Auditors ‘s opinion Justification

(a) Disclaimer Helping hand LTD had placed a scope of
limitation on the audit by not having the majority
of non – salary/ allowances voucher avaiblable as
a evidence of expense. Therefore, there is a
inability of obtain sufficient audit evidence. The
most likely auditor’s opinion is disclaimer
because the missing of 65% of non-salary/
allowances vouchers can affect the usefulness
financial report as a whole and so be considered
pervasive
(b) Qualified The disagreement of management resulted in
the financial report being materiality mistated.
The most likely auditor’s opinion is qualifed, as
the extent of the disagreement is not as
pervasive as to render the financial report as a
whole misleading, as it only relateds to valuation
of the properites.
© Adverse Big Event does not have income, cashs or other
assset to sustain such a loss. Therefore, it is
unable to continue as a goinng -concern
assumption. As Big Event prepared their financial
report as a going-cocern basis, in fact, it should
be prepared as a liquidation basis. So that the
auditor is likely to render a adverse opinion, as
the financial report as a whole is likely to be
misleading

12.29

Disclaime. Because the auditor could not obtain sufficent approriate evidence for the audit and this
is pervasive to the finnacial statements, the auditor therefore cannot expresss an opinions.