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Dear MikeLittle,
Kindly find below some queries that I have encountered:
Chap 8: – IFRS 16 – Leases under operating and finance lease are still considered to be treated separately?
Chap 9(pg66) – Audit work on the letter of support: What are the cases when a parent company do not have the power to provide a letter of support?
Chap 10 – If the uncertainty of going concern is properly disclosed, instead of including an emphasis of matter, we should add another heading ‘Material uncertainty related to going concern’?
Moreover, how can I distinguish between a material uncertainty and a non material uncertainty please? as I am confusing them.
Chap 11 – Why is a Non audit assignment for a review engagement needed, if it is nearly the same as conducting an audit?
Thanks and regards,
Marylise1) Yes
2) I can’t imagine any situation where a parent does not have the power. It may not have the wish nor the need to provide a letter – it would only write such a letter for the purposes of reassuring the subsidiary’s bank (or the auditors) that the subsidiary is a going concern with the full support of the parent
3) Yes
How to distinguish? How do you determine whether ANY matter is material? Materiality is in the eye of the beholder! Auditors need to exercise their innate skill, professionalism, experience …
As a rule of thumb (and I’ve never said this before!) there is uncertainty in EVERYTHING! Whoever would have predicted 10 years ago that the UK banking sector would collapse?
4) Maybe someone (bank? potential investor? substantial / significant shareholder?) is looking at a particular element of an entity’s financial statements but wants some sort of reassurance that that extract is (probably) reliable
OK?
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