Harmonizing to Lester A. Leight, 1963, the four auditing criterions specified in “ By and large Accepted Auditing Standards ” show that there are six common types of hearer ‘s studies, each one showing a different state of affairs met during the hearer ‘s work. Which are unqualified sentiment study ( Affirmative ) , unqualified sentiment study ( Negative/Adverse ) , qualified sentiment study, Piece-meal sentiment study and disclaimer of Opinion study ( Full Audit ) and disclaimer of Opinion study ( No or Insignificant Audit ) .
For Reliance Pacific Berhad one-year study, we had been identified that the one-year study which issued by hearer on the company ‘s fiscal statement is under the class of unqualified sentiment study ( Affirmative ) . Harmonizing to the Independent Auditors ‘ study to the member of Reliance Pacific Berhad ( 2nd paragraph ) , which shows that the sentiment is said to be unqualified because the independent hearer has formed that the Financial Statement gives a true and just position in relation to the fiscal coverage model used for the readying and presentation of the Financial Statements.
Besides, Independent Auditors ‘ study to the member of Reliance Pacific Berhad prepared by the Independent Auditor which has formed the sentiment based on an scrutiny made in scrutinizing criterions that the presentation sing with Generally Accepted Accounting Principles ( GAAP ) applied on a changeless footing and besides consisted of all information disclosures required to do the statement non misdirecting. ( Lester A. Leight, 1963 )
Furthermore, there is included of all stuff affairs relevant to the accurate presentation of the fiscal information topic to statutory demands and applicable. For case, the study consists of a rubric and heading, a chief organic structure, the hearer ‘s signature and reference, and the study ‘s issue day of the month. For the unqualified study, the chief organic structure of Independent Auditors ‘ study to the member of Reliance Pacific Berhad involves nine paragraphs, and each paragraph includes different intent and standard diction.
The first paragraph which is Report on Financial Statement, it referred as the introductory paragraph to province the audit work performed on the Statement of fiscal place of the group and besides of the company, the statement of comprehensive income and besides others information disclosures to the fiscal statement.
The 2nd paragraph referred to the Directors ‘ Responsibility for the Financial Statements and 3rd paragraph which is Auditors ‘ Responsibility, both of the paragraphs identifies the duties of the hearer and the auditee in relation to the fiscal statements.
Besides, the 4th paragraph and 5th paragraph item the range of audit work, provides a general description of the nature of the work, illustrations of processs performed, and any restrictions the audit faced based on the nature of the work.
The 6th paragraph referred to as the sentiment paragraph, which merely states the hearer ‘s sentiment on the fiscal statements and whether they are in conformity with by and large accepted accounting rules.
In add-on, the 7th paragraph provinces that the audit was performed in conformity with the state ‘s predominating by and large accepted auditing criterions and ordinances which is the Report on Other Legal and Regulatory Requirement and stated the others study duties and others matter province on the last two paragraphs.
Last but non least, the unqualified sentiment study issued by the independent Hearers for the Reliance Pacific Berhad one-year study has been decently determined and disclosed in the Fiscal Statements through the accounting rules or the method of their application.
The followers is the Independent Auditors ‘ Report to the Members of Reliance Pacific Berhad which showed the Independent Auditors issued a standard unqualified hearer ‘s study on the one-year study: However for the one-year study of Silver Bird Group Berhad, which issued by hearers on the company ‘s fiscal statement is under the class of disclaimer of Opinion study ( Full Audit ) .
Hearers issued disclaimer sentiment for the one-year study of Silver Bird Group Berhad, this is because they are incapable to demo sufficient appropriate audit grounds to supply a footing for their audit sentiment, and the hearers determine that the chance of effects for undetected misstatements on the fiscal statements, because the effect of a certain greatly material affair can non presently be determined ( ISA 705, 2009 ) .
Besides, the hearers have non been able to obtain audit grounds about the sum of stock lists of the company and histories receivable. For case, the hearers failed to obtain all the information required to confirm the add-ons of works and equipment amounting to RM4.9 million for the Silver Bird Group Berhad. Furthermore, the hearers unable to verify the truth of gross revenues minutess take on by the Silver Bird Group Berhad with six clients included four clients from the bakeshop division and another two clients from the telecommunication division amounting to RM149.0 million included in net income or loss
The hearer issued the disclaimer of sentiment study because of fail to obtain sufficiency of audit grounds at the same clip the hearer indicated the paragraph of introductory of the hearer ‘s study to demo that the hearer was involved to scrutinize the fiscal statements and besides described about the hearer ‘s duty and presented the audit range to province as the followers: “ Our duty is to show an sentiment on these fiscal statements based on our audit in conformity with sanctioned criterions on scrutinizing in Malaysia. Because of the affair described in the Basis for Disclaimer of Opinion paragraph, nevertheless, we were non able to obtain sufficient appropriate audit grounds to supply a footing for an audit sentiment. “ ( ISA 705, 2009 )
Furthermore, the Auditor has non been able to get sufficiency of audit grounds to find the detrimental sums of the investing in subordinates and loans of subordinates of the Company and the relevancy of the readying of the fiscal statements of the Silver Bird Group Berhad on a traveling concern footing.