Audit reporting revision question (NBAA, C2, NOV 2018)

You are completing the audit of Kizibo Ltd where the overall materiality level is TZS.25,000,000 for the year ended 30th June 2018. During the course of the audit, you have discovered that the directors of Kizibo had not revealed about one of the locations where a physical inventory count took place on 30th June. The value of inventory held on this premises is included in the draft accounts at a value of TZS.27,400,000.


Outline how the above scenario will impact on the audit report if the auditor cannot carry out alternative audit procedures to determine the existence of the inventory in the unrevealed location.

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