Q6

Modified audit report are the types of audit opinions that issue to entity's financial statements when
auditors found that those statements are not prepared and present fairly in all material respect in
accordance with the accounting framework.

An unmodified audit report in auditing can be defined as a report that the auditors prepare when
the financial statements in question are free from material misstatements and present the financial
position of the company fairly and in accordance with the accounting framework.

Q8

Assertions
1.Accuracy, Valuation and allocation
2.Accuracy and valuation and allocation
3.Rights and obligations
4.Completeness
5.Existence
6.Classification
7.Completeness
8.Completeness
9.Accuracy and valuation and allocation
10.Accuracy and Valuation and allocation
Q9

a. Business risks are threats that the organisation faces in attempting to achieve its goals. In this
case there are a couple of main business risks to HealthyGlow, both are in relation to the
purchase of the new full-body scanning machines.
-Studies that have shown the potential side-effects of the new machines is a concern, which
is a risk in the longer term. In the short term, the bad publicity is a risk although it appears to
have had little effect on the level of bookings.
The potential ban of the use of the machines by the Medical Association of NSW is a much
more significant short term business risk –even though management only assesses this
likelihood at 20% (the auditor would want more evidence on this). HealthyGlow have
significant capital investment in these machines and also significant revenue that is
contingent on the continued operation of the machines.

b. (1) The scanners account

(2) Revenue account