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hey
from the answer which have been published Q12, can you please reconfirm the answer for this as majority of the students have an issue with this.
surely, if the assumption of going concern is wrong in the FS, why would an auditor express a qualified opinion. will it not be Adverse opinion.
please explain in abit more detail…
i will appreciate your answer
For Q12, statement (2), if the going concern assumption is inappropriate, the FS contain material misstatements so should modify the opinion. I was originally wondering if ACCA was being strict or sloppy with ‘qualify’ ie using qualify to mean any modified opinion. If so, probably (2) is correct. It could be a bit of a trick, however, depending on how accurately the examiner uses the term ‘qualify’. Perhaps they want you to conclude that an adverse opinion is needed, in which case the answer is D.
It also depends on how the FS are drawn up and the question doesn’t say that they have been drawn up on the going concern basis. It only says that the FS should not be on a going concern basis. If they are actually drawn up on a break-up basis, then no modification of the opinion is needed so B is right again.
I think it’s a rather ambiguous question.
ah i see what you mean.
it can go both ways.
surely, if the question is stating the assumption is wrong than will we not use adverse opinion?
Yes. They are enough. Notes and lectures will generally give enough basic knowledge for you, but many of the questions require you to apply your knowledge, so going through the revision kit is very important.
They are course notes not a study text.
The notes will often not give you the answer to an ACCA question (but nor would a BPP Study Text) because questions have to be answered by applying your knowledge. However, used in conjunction with ACCA past papers the notes will enable you to understand the answers, and, after time, you will be able to produce your own answers.
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