Answered Questions

Date Submitted	16-Jul-10
Category	Audit & Assurance
Heading	Kaplan Exam 1 Question 4 Part D (c)
Question	I am confused as to why we would issue a qualified report - I can see it is a limit of scope but isn't this only an associate and everything has moved in the equity statement - and surely overall this is not material for the statements - would it be sufficient to be EOM but unmodified? HELP
Answer	As the opening inventory has not been verified, you do not know if Quick's profit for the year is correct and thereofre whether Snow's equity share of that profit is correct.