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Question - You are auditing Laksa Imports Ltd for the year ended 30th June 2020. The company is incorporated in Australia and imports a variety of food products from Malaysia. Consistent with previous years, Laksa accounts for inventory on a last-in, first-out (LIFO) basis, and has a policy of waiting until one month past the 'best before' date before writing stock down. Unfortunately the coronavirus pandemic has meant an end of year stocktake was not performed, and you have been unable to apply other procedures to validate the existence of the inventory at balance date.
Required - Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditor's opinion for Laksa Imports for the year ended 30th June 2020. Justify all aspects of your response.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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