(Solved): 1. Compare a Key Audit Matter (KAM) and an Emphasis of Matter. (4 marks) 2. What are the four differ ...

1. Compare a Key Audit Matter (KAM) and an Emphasis of Matter. (4 marks) 2. What are the four different opinions an auditor can issue? Discuss how materiality affect each. (8 marks) 3. How is the wording of an adverse opinion different from that of a qualified opinion? (6 marks) 4. You are the audit manager of Plums Unlimited (Plums), whose year-end is 30 September 2019. The field work is complete; however, your audit senior has raised an outstanding issue. The directors of Plums have made appropriate disclosure relating to worries over going concern in the financial statements. Your audit senior has a significant level of concern regarding the going concern basis but feels the disclosure is appropriate and agrees with the use of the going concern basis. You concur with the audit senior's conclusions. Required Based on the above, state the audit opinion the auditor is likely to issue and describe any impact on the audit report. (2 marks)