Essay
Bludger Ltd's auditors were appointed after the end of the financial year and discovered that the company had also changed banks shortly after the year end. The directors refused permission for the auditors to contact the previous bankers for confirmation of the year end bank balance without giving any good reason. The total of net current assets was £1.2m of which the bank balance amounted to £123,000 overdrawn.
Which of the following options should the auditors take when considering their audit report?
| Not modified | |
| Modified | |
| ‘Except for’ – limitation of audit scope | |
| Except for – material disagreement | |
| Disclaimer – pervasive limitation of audit scope | |
| Adverse opinion – pervasive disagreement |
Correct Answer:
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Correct Answer:
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