Reports in dec 11

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    sidrashahab
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    Lisa wrote in examiner report of dec11 that breach of any IAS ( which results in misstatement which is not MATERIAL ) would not qualify audit report.
    I don’t understand .
    In ques 2 of dec 11- inventory was not written down = amount was not material = unqualified report, provision was not provided = immaterial amount = not qualified in isolation., BUT no disclosures for IAS 24 = amount was immaterial in isolation = REPORT WAS QUALIFIED due to breach of IAS 24.
    Please make me understand………..


    Avatar of MikeLittle
    MikeLittle
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    Where an amount is not material neither in isolation nor in aggregate, then no qualification

    But there is the matter of qualitative marteriality – where something needs to be / is required to be disclosed and either there is no disclosure or such disclosure is inadequate or inappropriate, then that WOULD merit a qualification of the audit opinion


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    sidrashahab
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    Thanks mike . Qualitative materiality is a new concept for me


    Avatar of MikeLittle
    MikeLittle
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    Welcome – but it’s a bit worrying that qualitative materiality is a “new concept”!


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    emeimei
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    Hi, I have another question bout auditor report appraisal. Who will do the appraisal of auditor report? AIU or audit committee? Before or after auditor report issued? What would they do to apPraise? Reperform audit Procedures etc? Cz I dun have clue bout this, thanks! ;)


    Avatar of MikeLittle
    MikeLittle
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    Give me the original context of the expression “audit report appraisal”

    It COULD relate to a review ( hot or cold ), but I suppose it Could relate to a review carried out by an audit committee. Give me the context and I’ll answer more definitively


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    emeimei
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    I see, but I dun have a context actually cz I came across ‘summary to changes in ACCA 2012 study guide’ that ‘F1(a)Reporting (Appraisal of auditor’s report)’.
    So I was thinking if these could be related?
    (I’m using text for year 2011 thus Im quite nervous on the change of syllabus that’s not on my version of text) thanks a bunch! ;)


    Avatar of MikeLittle
    MikeLittle
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    Ah! Now I understand! What Lisa could ask you to do is appraise critically a draft audit report, identify the non-acceptable bits, point out where it could be improved. That sort of appraisal. It’s nothing to do with hot / cold reviews.


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    emeimei
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    I see thanks a lot ;)


    Avatar of cuteleo110
    cuteleo110
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    Great Mike!!

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