Audit Assignment

d) Analyse the format of reports.

All of these three companies, Sime Darby Property Berhad, Petrol One Resources Berhad and London Biscuit Berhad have the similar format for their auditor’s report. Their auditor has prepared the audit report in accordance with the requirements of the International Standard of Auditing. Their auditor’s report has put the title with clearly stated that it is an independent auditor’s report.

These three companies have expressed the opinion by auditor in their auditor’s report, but the opinion they expressed were different. The opinion for Sime Darby Property Berhad is unqualified opinion, Petrol One Resources Berhad is disclaimer opinion and London Biscuit is qualified opinion.

Unqualified opinion is that the company’s financial statements are represented fairly of the company’s financial position. It is also means that the opinion or report is clean and free from material misstatements. The auditor’s opinion for Sime Darby Berhad is unqualified opinion. The audit evidence that the auditor has obtained is appropriate and sufficient so this can offer the basis for the auditor’s opinion. The risks of material misstatement in the company’s financial statements have be evaluated by the auditor and the auditor also has determined the materiality of company’s financial statements when the auditor is doing the auditing. The auditor has considered the subjective judgements made by director such as the considered of inherently uncertain future events and in terms of the estimation of significant accounting that have including the making of assumptions.

Qualified opinion is the auditor’s work have any scope restrictions or there is material misstatement in company financial statements. London Biscuit has qualified opinion in their auditor’s report. The auditor has found out that the company’s opening balances have misstatements and the current period of company’s financial statements have been materially affected by this misstatement.

Disclaimer opinion is the opinion that is lack of the appropriate or sufficient audit evidence. Petrol One Resources Berhad has a disclaimer opinion in their auditor’s report. The company has not express opinion accompanying company’s financial statements, this is because that the company have not been able to obtain appropriate and sufficient audit evidence to offer a basis for audit opinion on company’s financial statements.

In addition, the responsibilities of the Directors for the financial statements also have including in their auditor’s report. Comparison between these three companies, the content for the responsibilities of the Directors for the financial statements are look alike. It has not much differed in the content.

        Furthermore, in their company auditor’s report is also having Auditor’s Responsibilities for the Audit of the Financial Statements section. For the companies Sime Darby Property Berhad and London Biscuit Berhad, it has a slightly different of the content in the section of Auditor’s Responsibilities for the Audit of the Financial Statements. For Petrol One Resources Berhad, because of their report is in the basis of disclaimer opinion and they could not get the adequate and appropriate evidence to afford the basis for audit opinion on company’s financial statements, so it not has much of description in the Auditor’s Responsibilities for the Audit of the Financial Statements section.