Question

The TMA Questions

Kuwait Telecommunications Company (VIVA)

Kuwait Telecommunications Company (VIVA) is Kuwaiti Shareholding Company incorporated pursuant to Amiri Decree No. 187 on 22 July 2008 to operate and manage a mobile phone network in Kuwait as per Law no. 2 of 2007. Accordingly, VIVA was launched in December 2008 and was listed on Kuwait Stock Exchange during December 2014.

You can download the 2017 annual report for Kuwait Telecommunications Company (VIVA) directly from the following web page:

https://www.viva.com.kw/viva-publish-1.0/pdf/VIVA_Annual_Report_2017_EN_UPDATED.pdf

Instructions:

Use the 2017 annual report to answer the following questions:

What is the basis for opinion of the independent auditor, and determine the auditor’s responsibilities for the audit of the financial statements?

Answer 1

Opinion Section : This section states the auditor's opinion on true and fair view of financial statements. Opinion selection of the Auditor's report shall also cover the following

• Identify the entity whose Financial statements have been audited
• state the financial statements have been audited
• Identify title of each document that comprises Financial statements
• Refer to the notes, including the summary of significant accounting policies, and
• Specify date of period covered by each Financial statement

Basis For Opinion Selection : The auditor's report shall include a section, directly following the Opinion Selection , with the heading "Basis for Opinion " that

• States that the audit was conducted in accordance with Auditng standards
• Refers to the section of the auditor's report that describes the auditor's responsibilities under the standards of auditing
• Includes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirement relating to the audit, and has fullfilled the auditor's other ethical responsibilties in accordance with these requirements. The statement shall refer to the Code of Ethics issued by ICAI
• States whether the auditor believes that the audit evidence the auditor has obtained is sufficient and Appropriate to provide a basis for the auditor's opinion.

Auditor's responsibility states the following :

• State that the Objectives of the auditor are to obtain reasonable assurance about whether the Financial statements as a whole are free from material misstatement , whether due to fraud or error and issue an auditor's report that includes the auditor's opinion
• State the reasonable assurance is a high level of assurance, but is not a guarantee that an audit will always detect a material misstatement when its exists.
• State that material misstaments can arise from fraud or error and will be considered when appears material in accordance with the applicable Financcial reporting framework.
• State that , as part of an audit in accordance with standard of auditing, the auditor exercises professional judgement aand maintains professional skepticism throughout the audit.
• Describe an audit by stating that the aauditor's responsibities are;

1. To identify and assess the Risk of material misstatements of the financial statements, whether due to fraud or error
2. To design and perform audit procedures responsive to those risks
3. To obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor's opinion
4. To obtain an understanding of internal control reevant to the audit in order to design audit procedures that are appropriate in the circumstances.
5. To Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management
6. To conclude on the appropriateness of management's use of the going concern basis of accounting.