Greenfield Ltd has capitalised significant funds incurred in developing an improved new
wine cap that allows the wine to continue to develop in the bottle. On 20 July, Greenfield
Ltd applied for a patent for the cap, only to discover that a competitor had lodged a similar
application on 15 June. The granting of Greenfield Ltd’s patent application is now in
serious doubt. Management do not believe any change to the financial report is required.
Required:
For each independent situation, state the type of audit report that you should issue and give
reasons for your answer
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