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Again, these could be adjusting or non-adjusting.
If adjusting it implies that the FS and the report was wrong, so steps should be taken to reissue accounts and perhaps reissue the audit report.
A non-adjusting event might require an Emphasis of Matter and a not in the accounts.
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how to know adjust or non adjust the event???
when need to show the audit report is “limitation of scope” or “disagreement”??
Adjusting events are those that give evidence of conditions that existed at the balance sheet date. Eg customer going into liquidation 15/1: this proves the receivable 31/12 was bad on 31/12 so should be written down.off/
Other events are non-adjusting – eg fire burning down factory on 15/1: factory was fine on 31/12.
The terms ‘limitation of scope’ and ‘disagreement’ are now obsolete and I suggest you look at the OT lectures and notes.
@gromit
can you help to look this question.. Iam self-studying F8 so encounter the EoM issues…
Emphasis of Matter (EoM)
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