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Dear Mike,
Hope you are well.
Would you please help me on this matter. What is the impact on the auditors’ report when there is inconsistency between accounting standards and local regulations and as the result some sections of financial statements are prepared based on the local regulations?
The auditor report should be qualified or it should be stated in the EOM paragraph? Is it mentioned in any ISA ?Regards
If you follow this link …
https://www.devro.com/investors/annualreport2016/
and look at the Independent Auditors Report on page 120, you’ll see in the basis of opinion paragraph the detail that states the basis of the preparation of the financial statements and, particularly, the accounting framework that has been followed and the applicable law and regulations that have been complied with
Your post relates to a set of financial statements prepared under local GAAP. In this situation te auditors will specify that the financial statements have been prepared in accordance with that local GAAP
If necessary, a parallel set of financial statements will also be prepared in accordance with IFRS / IAS and enable the auditor to issue a report referring to the truth and fairness of the view shown by this second set of parallel financial statements
OK?
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