Internal control system on procurement.

Auditors should form an opinion on the adequacy of the accounting treatment of an inherent uncertainty disclosed in the financial statements of a company.

i) What is meant by the term “inherent uncertainty”?
ii) Explain the treatment of inherent uncertainties in the auditor’s report.

b) Summarize the principal contents of a statement of directors’ responsibilities to be included in financial statements.

c) Explain the steps an auditor should take if he concludes that the client has made a departure from an accounting standard in the preparation of the financial statements.

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