Exam 19: Audit Reports on Financial Statements

The standard unmodified audit report in the auditor responsibility section states that the audit is designed to

The following are two unrelated situations.For each situation,outline possible deviations (if any)from an unmodified auditor's report that may be necessary,and give reasons.State your assumptions.A)Rosebud Ltd.is a construction company that builds and repairs greenhouses for nurseries.An architect does the design and three different small construction companies are used to build the greenhouses.You are concerned that some of the projects that span the April year-end may result in material losses,even though income has been reported in the coming year.Management has refused permission for you to enter construction sites,as they feel that the construction sites will be dangerous and they do not want to be exposed to such liability.B)Save Our Trees is a charitable organization devoted to maintaining national woodland and green space.Fundraising is handled primarily by means of electronic mail and door-to-door canvassing by volunteers.Canvassing volunteers provide receipts at the door using pre-numbered receipts.Donors who give money by email are sent receipts by email.