18 Questions
What type of report is issued when the auditors find the financial statements acceptable in all respects?
Unqualified report
Which type of auditor is responsible for supervising the preparation of the financial statements?
Internal auditor
What is the purpose of an auditor's report?
To provide an opinion on the financial statements
What type of report is issued when the auditors find the financial statements acceptable except for some aspects that need to be changed?
Qualified report
Who receives the auditor's report?
Shareholders
What happens when the auditors are not prepared to express an opinion on the financial statements?
They issue a disclaimer report
What is the balance of the Mortgage loan: Joy Bank account?
R 684 460
What is the amount of Provision for bad debts?
R 12 000
What is the cost of sales?
R 7 487 000
What is the amount of Debtor's control account?
R 955 000
What is the fixed deposit interest income?
R 26 630
What is the amount of Salaries and wages?
R 480 000
What is the purpose of the notes to the financial statements?
To provide additional information about the financial statements
What is the journal entry to record the provision for bad debts?
Debit Provision for Bad Debts, Credit Trade Debtors
What is the formula to calculate the carrying value at the end of the year for tangible/fixed assets?
C + D - E - F = J
What is the treatment of land and buildings in terms of depreciation?
Depreciation is not charged on land and buildings
What is the purpose of the Balance Sheet?
To show the financial position of the company at a specific point in time
What is the name of the bank where the company has a fixed deposit?
Supra Bank
Study Notes
Auditor's Report
- A qualified auditor's report is an opinion given by a qualified person on whether the financial statements are reliable or not.
- An unqualified auditor's report is given when the financial statements are acceptable in all respects.
- A qualified auditor's report is given when the financial statements are acceptable except for some aspects that need to be changed, fixed, or investigated.
- A disclaimer is given when the auditors are not prepared to express an opinion on the financial statements.
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