Audit Opinion - when not agreed with IAS?

Eelsie200911y ago

Hi Mike How is the audit opinion affected by non compliance with the accounting standards, if the transaction in question is found to fall below the materiality levels? If it falls below the materiality levels then no modification would be made, however the directors and auditor state that the accounts have been prepared in accordance with the accounting framework, therefore there is a non compliance issue so would this constitute a material misstatement assuming the directors refuse to change treatment? Thanks in advance :)

MikeLittleTutor11y ago#1

If, as you have suggested, it's an immaterial non-compliance, then no affect unless it's a qualitative rather than quantitative non-compliance I would be sorely tempted to modify / qualify my audit opinion on the basis of non-compliance. For example, if eps is not disclosed, it hardly makes a difference to the truth and fairness of the results nor financial position of the company, but it is a disclosure requirement and worthy of a modified opinion Ok?

Eelsie200911y ago#2

Great thanks:)

MikeLittleTutor11y ago#3

You're welcome

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