Describe the effect of each of the circumstances

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Reference no: EM132887533

Assume you are an auditor and you are facing the following separate circumstances, the effects of all items below are material:

1. The directors of a construction company refuse to give you access to reports produced by an independent quantity surveyor in relation to the value of work done on some of their construction projects.

2. Management have excluded from the financial report the necessary disclosures in relation to a contingent liability.

3. The company that runs a dairy farm has prepared the financial report on a going concern basis; shortly after the year end the company's contract with a major supermarket was cancelled. Without this customer you expect the business to cease trading within six months and it is unlikely that the company will be able to secure any new contracts in that time.

Required:

Problem 1: Outline what the issue is and then describe the effect of each of the above circumstances on your auditor's report if management were to refuse to make any changes you feel necessary in order that the financial report gives a true and fair view.

Reference no: EM132887533

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