Junior Auditor: I agree. We have sufficient appropriate evidence to form our opinion.
Audit Partner: Our audit has revealed that many of your accounts are inaccurate. For example, it appears your wages payable and creditor accounts have been understated.Owner: How is that possible? Our company accountant has been following all the relevant standards, there’s no way this could happen.
Audit Partner: Based on our audit of your company, we will have to give an adverse opinion as we feel there has been misstatements which are material and can be pervasive to the financial report.Owner: I don’t believe this, we paid you to provide a service and you’ve done this to us?! This is outrageous!
Auditor: Very good job, this was a unique audit but you showed great organisation, communication and analytical skills. You’re developing very well. Junior auditor: Thank you. How often do you get audits like this?
Auditor: Not very often, but that’s the key. As an auditor, you’ll learn that not all audits are box-ticking and checking figures. You always need a level of professional scepticism and judgement to conduct your audit so you give reasonable assurance. Junior auditor: I’ll remember that.
Owner: Well, we are going to fall behind on the loan, sales are still falling because of the virus and our reputation as a brand has been tarnished.Company accountant: We had to do what we did to try to save the company. Owner: Maybe, maybe not.