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If a loss is misstated as profit by overstatement of 129% . Isn’t this having a pervasive effect on p/l.
[ Q: Johnston & Tiltman (6/06) i know its too old to practice] the examiner’s answer is material effect.If a profit is actually a loss .. shouldn’t this result in an adverse opinion.
Please help!Opinion itself is quite judgmental, if you write an opinion and judge it accordingly then you will get the marks.
In answer to your question Kingsandqueens, you are correct in that, where a profit is reported and the auditors believe that the T&F result is a loss, that would automatically be considered a pervasive material misstatement
Thanks Mike,
i wish the examiner agrees with this too. my reporting opinions are always at odds with hers. :/Satesh indicated in his / her post that an opinion is subjective – it’s literally “an opinion” and opinions about anything / everything are personal.
If you back up your conclusion with reasoned argument ( important at P level ) then you should not lose many marks even though your conclusion is different than the examiner’s answer
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