p7 related question….

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    jabie
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    whats material and pervasive???


    Avatar of MikeLittle
    MikeLittle
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    Material is of such great importance in the context of the financial statements that the auditor is unable to give an unqualified opinion, either because of a disagreement ( with law, accounting standards, presentation or simply the amount shown ) or because the auditor is unable to obtain sufficient appropriate audit evidence about a particular matter within the financial statements – an uncertainty.

    Pervasive is, by definition, very material. It is of such importance that the financial statements categorically DO NOT show a true and fair view ( disagreement ) and are therefore “misleading” or because there are so many areas within the financial statements about which the auditor is unable to obtain sufficient appropriate evidence that the financial statements are thereby rendered meaningless ( the official description is “misleading” but that fails to distinguish the pervasive uncertainty ( misleading ) from a pervasive disagreement ( misleading! ))

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