Question

For each of the following situations below, identify the appropriate opinion type (audit report)

Level of Materiality Situation Immaterial Material So Material 1- The Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty 2 change from straight-line depreciation to an accelerated method for depreciating equipment 3 adjustments to correct a material misstatement in previously issued financial statements 4 Important events occurring after the balance sheet date. like Corona pandemic 5 the auditor have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. 6 Income statement not prepared in accordance with IFRS 7 when the auditor is not appointed until after the client’s year-end. It may not be possible to physically observe inventories, confirm receivables, or perform other important procedures after the balance sheet date

Answer 1

Situation	Type of Audit Opinion	Materiality
The Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty	Adverse Opinion	Material
Change from straight-line depreciation to an accelerated method for depreciating equipment	Unmodified Opinion	Immaterial
Adjustments to correct a material misstatement in previously issued financial statements	Qualified Opinion	Material
Important events occurring after the balance sheet date. like Corona pandemic	Adverse Opinion	Material
The auditor have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion	Disclaimer of opinion	Material
Income statement not prepared in accordance with IFRS 7 when the auditor is not appointed until after the client’s year-end. It may not be possible to physically observe inventories, confirm receivables, or perform other important procedures after the balance sheet date	Adverse Opinion	Material