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Ken Garrett.
Ken Garrett.-
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respected sire,
how is that we would know that error that had occurred is pervasive to financial statements?
as sir you gave example of not able to quantify the inventory so unable to obtain evidence and you said that if it has adjustments if any would give qualified opinion , but sir the effect of inventory quantity has in cost of sales , current assets, so isn’t that pervasive ?
i couldn’t clearly understand your distinction of inventory example as to relate to qualified and disclaimer of opinion? please!! explain me bit more so i understand more easily 🙂
Ken Garrett
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Yee, but it also depends on the size of the problem. If inventory is small, though material otherwise there wouldn’t be a problem, it would not be helpful to shareholders to issue a disclaimer.
Disclaimers amd adverse are both effectively saying that rhe FS are a waste of paper and don’t provide any useful information.
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