ACC302 Auditing and Assurance Assessment : Case Study.

Running head: ACC302 AUDITING AND ASSURANCE ASSESSMENT 3: CASE STUDY
ACC302 Auditing and assurance assessment 3: case study
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1ACC302 AUDITING AND ASSURANCE ASSESSMENT 3: CASE STUDY
Table of Contents
Answer A.........................................................................................................................................2
Scenario 1....................................................................................................................................2
Situation 2....................................................................................................................................2
Situation 3....................................................................................................................................2
Scenario 4....................................................................................................................................2
Answer B.........................................................................................................................................3
Scenario 1....................................................................................................................................3
Scenario 2....................................................................................................................................3
Scenario 3....................................................................................................................................4
Scenario 4....................................................................................................................................5
Reference.........................................................................................................................................6

2ACC302 AUDITING AND ASSURANCE ASSESSMENT 3: CASE STUDY
Answer A
Scenario 1
In the given situation the auditor shall issue adverse opinion. This type of opinion is
provided while the financial records of the entity are not complied with GAAP. Further, financial
records produced by the entity have been misrepresented grossly (Vichitsarawong and
Pornupatham 2015).
Situation 2
Under the given scenario the auditor shall express qualified opinion. This type of opinion
is provided while the entity dies not maintain financial records in conformation with the GAAP,
however, misrepresentation has not been recognized. Though the statement provided with
qualified opinion is similar to the unqualified opinion with only one addition that highlights the
reasons why unqualified opinion has not been provided (Tahinakis and Samarinas 2016).
Situation 3
In the given circumstance, the auditor shall express disclaimer of opinion. If in any case
the auditor is not able to complete the audit report accurately owing to reasons like inadequate
financial records, the auditor issues disclaimer of opinion with the statement in context of the
opinion on account of the fact that financial status of the firm could not be established
(Vichitsarawong and Pornupatham 2015).
Scenario 4
In the given scenario the auditor shall express qualified report. Such report is issued
where while the entity dies not maintain financial records as per the requirement of GAAP,