Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Audit Opinion – when not agreed with IAS?
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
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- November 26, 2014 at 9:35 pm #213599
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 🙂
November 27, 2014 at 11:11 am #213773If, 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?
November 27, 2014 at 12:15 pm #213792Great thanks:)
November 28, 2014 at 4:35 pm #214154You’re welcome
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