Question
During audit of XYZ Ltd., the auditor noted that the
management concealed certain pending litigations that could affect profitability. However, the CFO insisted it was not material. The auditor suspects deliberate omission. Under SA 200 and SA 240, what should the auditor do?Solution
As per SA 240, if there is a suspicion of fraud or material misstatement, the auditor must enhance audit procedures and consider modifying or qualifying the opinion.
More Auditing Questions
What value should come in place of the question mark (?) in the following question?
2048 ÷ 16 + 256 × 2 − 180
...What will come in the place of question mark (?) in the given expression?
55% of 1600 – (18 × 50) = ? ÷ 16
Evaluate: 18 ÷ 3 × 4 + 6 − 5
18, 25, 33, 42, 52, 63, ?
√(24 × 5 ÷ ?) × 4 = 56 + 34 – 10
25% of 1600 – 152 = ? × 5
89 ÷ 512 × (1/64) = (23)?
What will come in the place of question mark (?) in the given expression?
? = {1026 ÷ 54 + 17 × 13 – (384 ÷ 24)}
?% of 320 - 69 = 123
520% of 360 – 12% of 400 = ? x 4
