Audit report

Audit report

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An audit client has only got one customer and 3 suppliers. Under what should this be disclosed in the audit report - "Emphasis of matter" or "Other matters"? Example of wordings would also be highly appreciated.

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By Euan MacLennan
05th Jan 2012 12:03

Why are you qualifying the audit report?

It may be unusual that a company has only one customer, but that in itself does not justify a comment in the audit report.  What is your concern about the truth and fairness of the accounts?  Going concern, perhaps?

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Replying to JCresswellTax:
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By lavek
05th Jan 2012 15:41

My concern is going concern.

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By Chris Smail
05th Jan 2012 17:01

Accounting Poicy

Ensure that the accounting policy explains fully why going concern has been used to prepare the accounts.

Then decide if the audit report needs to draw attention to the policy.

Do you have a genuine concern (as opposed to a nagging uncertainty)? If so how are you able to form an opinion?

 

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Replying to Joe Soap:
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By lavek
05th Jan 2012 17:09

Thanks Chris.

Don't have a genuine concern just an uncertainty which I feel the reader of the accounts should be made aware (if the customer folds up so does the client).

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