Auditing and Assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

C Company did not produce the records of the debtors to the auditor saying that all the debtors of the company are paying all their liabilities in due date. And the chief accountant of the company insisted that the auditor need not verify the debtor’s balance, as the debtors are considered good the management.

In this case the auditor fails to obtain sufficient information to form an overall opinion the matters contained in the financial statements he may then issue a disclaimer of opinion. In this case, the auditor is unable to verify the debtors’ ledger it may amount to restriction on the scope of the duties of an auditor. Therefore, the auditor may state that he/she is unable to express an opinion because he/she has not been able to obtain sufficient audit evidence to form an opinion.

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