[beomkomap]

Dear Teacher, I got it now. I always thought insurance coverage is also part of our audit so we need to make sure the assets are sufficiently covered by insurance.

[beomkomap]

Dear Teacher, in your example, if we audit the client, we should request them to increase the insurance coverage to 100% NBV = $700,000. Am I understanding correctly? Thank you so much.

[beomkomap]

Dear Tutor,

Tks for the welcome and detailed explanation. I fully understand it now with your kind help.

I also would like to ask about whether its a must to obtain evidence about the material misstatement of Opening Balance.
I have 2 questions regarding Opening Balance and the appointment of a new auditor with different answers as follows, the answer is based on trust between the current auditor and the previously-appointed auditor. Could you please share a tip if possible?

Client D: your firm were appointed during the year after the previous audit
firm resigned suddenly. It is not possible within the budget to audit the
brought forward figures from the previous year.

->Answer: Qualified-except for opinion.
->My thought: I do agree with this because I think Missing of opening balance figures is material but not pervasive.

Client E: your firm was appointed during the year following the sudden death of the previous auditor, a sole practitioner. Although it had not been possible to find evidence to support this year’s opening balances, the audit partner considered that the previous auditor was highly professional and therefore last year’s figures could be relied on.

-> Answer: Unmodified with Emphasis of matter opinion because the audit partner trust the previous work 100%.
->My thought: I think this should be Qualified-except for opinion also. Issuing an Unmodified opinion means that no supporting evidence of Opening Balance is not material, am I mistaken somewhere please?

[beomkomap]

Dear Sir,

You mentioned “If there is an outstanding receivable in the SFP then this is not eliminated as it is outside of the group.”, is this the “Dividends receivables from Associate” to the Parent?

I have been wondering why this is not eliminated, what is the difference between “Dividends receivable from Associate” in Income Statement and SFP?

Thanks so much!

[beomkomap]

Thank you for the response. I’ve watched 2 videos about Transfer pricing on your youtube channel, will revisit them. 🙂

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