Pervasive effects
Pervasive effects are effects on the financial statements, or possible effects where evidence is insufficient, that are not confined to specific elements, represent a substantial proportion, or are fundamental to users’ understanding in relation to disclosures. Pervasiveness affects the type of modified opinion.
Worked example
An inappropriate accounting basis affects many fundamental balances across the statements.
Common mistake
A large amount is not automatically pervasive: consider the nature and spread of effects as well as size.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |