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Marr june 14

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Marr june 14

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Kim Smith.
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  • August 2, 2018 at 6:39 pm #465894
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi sir,

    Regarding court case

    The matter is immaterial i agree so should not be included in EOM para

    But
    As the lawyer syated the outflow is probable is should be treated as provision.

    But the mgt dealt w it wrongly as contingent liab because they made a note in f/s

    My question here if we assumed the matter is material
    The mgt had made a disclosure(yes) the made a note

    So can this matter be included in EOM para?

    Thanks

    August 6, 2018 at 7:18 am #466360
    Kim Smith
    Keymaster
    • Topics: 136
    • Replies: 8375
    • ☆☆☆☆☆

    An EOM can NEVER EVER be used as a “substitute” for a qualified opinion.

    Please see the published answer – if a matter is not material (so does not call for a qualified opinion), it does not get any mention in the auditor’s report.

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