Missing Files Create A Limitation on Scope of Audit Assignment
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Missing Files Create A Limitation on Scope of Audit Assignment
The missing files create a limitation on the scope of the audit. There is the possibility that the auditor is not able to gather sufficient appropriate evidence on which to base his audit opinion It appears that the circumstances were beyond the control of the client and mainly affect sales revenue and accounts receivable The reporting possibilities in these circumstances are Unqualified report if the lack of evidence affecting sales revenue and accounts receivable is not material Qualified report if the loss of sales records and accounts receivable records prevent the auditor from obtaining sufficient appropriate evidence and the effect is material but not pervasive Disclaimer of opinion report if the loss of sales records and accounts receivable records prevent the auditor from obtaining sufficient appropriate evidence and the effect is material and pervasive Critical issues considered for the audit opinion decision include Evidence that the problem was confined to a defined period The information is that the problem began four months into the year, and appears to be corrected Ability to perform alternative procedures, such as using subsequent cash receipts to verify sales for the period Confidence in the value of accounts receivable at the end of the fiscal period This is if the problem has corrected the accounts receivable at the end of the period, then should be unaffected by problems which occurred at the start of the year
Given the circumstances of Kingston Catering, the most likely audit opinion is qualified because of the above reasons The audit report would be as follows Independent Auditor’s Report To the owners of Central Companies Report on the Financial Statements We have audited the accompanying financial statements of Kingston Catering (KC), which comprise the balance sheets as of December 31, 2023, and the related statements of income, changes in equity, and cash flows for the year then ended, and the related notes to the financial statements Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of
America this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits We conducted our audits in accordance with auditing standards generally accepted in the United States of America Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control Accordingly,
we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion Basis for Qualified Opinion In the second quarter, Kingston Catering experienced an IT system issue in which critical accounting data related to sales and
accounts receivable was corrupted The company was not able to recover some of the data, therefore, we were not able to obtain sufficient appropriate audit evidence to substantiate sales and accounts receivable from the first four months of the year Consequently, we were unable to determine whether any adjustments to these amounts were necessary Qualified Opinion In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Kingston Catering as of December 31, 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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Missing Files Create A Limitation on Scope of Audit Assignment