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Hi Sir,Hope you are doing well.
I had two questions.
Firstly i have read a n article by LISA on Audit procedures and past exam questions she has not much used the words like Observe inspect.Like she would OBTAIN a copy of an agrremnt which is inspection so i have also prepared with that thing in mind.Is this right .
Secondly i get confused with Opinion given in Riviews and Assurance engagements.As far i know we have give to give a CONCLUSION in assurance engagments and Negative opinions in Riviews.but the coclusion in Assurance engagaemnts can it be a Negative Opinion.
In answer to your first question, it really depends on the verb in the exam question. If she asks “What procedures would you adopt?” then “Obtain” would seem appropriate but it depends what you are auditing. For example, you couldn’t obtain a building, but you could inspect it. You couldn’t obtain an internal control procedure, but you could observe it.
Fit your answer to the situation
For the second question, yes, a review engagement would normally result in a conclusion – but it could be a negative conclusion. “The procedures which we reviewed were NOT being carried out in accordance with the company’s policies / procedures”
An assurance engagement could result in negative assurance “Nothing came to our attention to suggest ….” or it could result in a qualified assurance “Subject to the above identified errors, nothing further came to our attention …”
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