(Learning Objective 1: Expressing an audit opinion) You have just completed the audit of four…

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(Learning Objective 1: Expressing an audit opinion) You have just completed the audit of four…

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(Learning Objective 1: Expressing an audit opinion) You have just completed the audit of four companies: North, East, West, and South. The conclusions of the audits are summarized below for each company. _ North: The audit highlighted a number of immaterial differences in the calculation of commission expenses for the year. _ East: The accountant was not able to explain numerous discrepancies. One of the major problems was that many customer orders and invoices were missing, making it impossible to audit. _ West: Its financial statements fairly represent the companys financial position
(Learning Objective 1: Expressing an audit opinion) You have just completed the audit of four companies: North, East, West, and South. The conclusions of the audits are summarized below for each company. _ North: The audit highlighted a number of immaterial differences in the calculation of commission expenses for the year. _ East: The accountant was not able to explain numerous discrepancies. One of the major problems was that many customer orders and invoices were missing, making it impossible to audit. _ West: Its financial statements fairly represent the companys financial position and performance, but the audit team disagreed with managements use of a particular accounting policy. _ South: Its financial statements are wrought with errors, as the accountant has completely messed up the translation of the process of consolidating Souths subsidiaries. As a result, none of the financial statements faithfully represent the economic phenomenon during the financial period. Requirements Propose the most appropriate type of audit opinion for North, East, West, and South based on the audit notes above.

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