Basis for for opinion

Hi guys, You can refer to Isa700 revised and note that the structure of auditors' report changed. However, I am not sure whether we will apply all changes in ISAs for Sep16 onwards for all questions. Otherwise, questions state clearly we can apply Old ISAs. Hi Mike, Could you pls confirm? Thanks

xitrumisd - your's is a separate question and does not hang nicely from Mini's question In future, please start your own thread when your question is a new topic In answer to your question, where a new ISA or a revised ISA is shown as examinable in the detailed page 'examinable documents P2' (yes, P2), then it's examinable in P7 Here's the link: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/examinable%20documents/f7-p2-examdocs-2016-2017.pdf

Mini, each time a new ISA arrives or an old ISA is revised, the approved publishers are NOT going to go through all the past exams and amend the answers to bring them in line with the new / revised ISA This question that you are using as an illustration is from 2012 so clearly is not affected by the ISA revision that is in the syllabus and examinable for the first time next week You need to be aware of this so that you will not be misled!

Thank you Mike :) I read that is highly important to have updated study materials due to changes in ISA and therefore i bought the exam kit applicable from September 2016 although i have already had one that was applicable before September 2016 :( in addition, in the technical article the new auditor's report is stated "...in the revised ISA 570 and the use of an Emphasis of Matter paragraph is no longer appropriate. " Does it mean that although we think that there should be Emphasis of Matter paragraph we don't write it in our answer because it is no longer appropriate and we use KAM instead?

Please ignore my question, I have just seen that you have already answer it :)

OK, I'll ignore it. However, have you given me the full context of that extract from the revision kit? “…in the revised ISA 570 and the use of an Emphasis of Matter paragraph is no longer appropriate. ” Or have you been selective in quoting that extract?

HI Mike, I took it from the technical article, please see the last sentence: REPORTING IN LINE WITH ISA 570, GOING CONCERN Exam questions might ask the candidate to recognise indicators that an entity may not be a going concern, or require candidates to arrive at an appropriate audit opinion depending on the circumstances presented in the scenario. It may be the case that candidates are presented with a situation where the auditor has concluded that there are material uncertainties relating to going concern and the directors have made appropriate disclosures in relation to going concern and candidates must understand the new auditor reporting requirements in this respect. The auditor’s work in relation to going concern has been enhanced in ISA 570 (Revised), Going Concern and the revised ISA includes additional guidance relating to the appropriateness of disclosures when a material uncertainty exists. Under the previous version of ISA 570, if the auditor concluded that the going concern basis of accounting is appropriate, but a material uncertainty exists and this material uncertainty had been adequately disclosed in the financial statements, the auditor would include an Emphasis of Matter paragraph immediately after the Opinion paragraph which would be cross-referenced to the relevant disclosure note in the financial statements. The auditor would also emphasise that their opinion is not modified in respect of the material uncertainty. This requirement has changed in the revised ISA 570 and the use of an Emphasis of Matter paragraph is no longer appropriate.

This is exactly what I meant! Your earlier post quoted 'in addition, in the technical article the new auditor’s report is stated “…in the revised ISA 570 and the use of an Emphasis of Matter paragraph is no longer appropriate. ”' This is selective quoting by you and, taken out of context, I could be led to believe that you assume that an Emphasis of Matter paragraph is no longer appropriate (in any situation) This was the very reason why I asked you!! So long as you fully understand that EOM paragraphs do still have a role to play in auditors' reports, that's ok!

Dear Tutor, Thank you for your explanation. It is much appreciated. In addition could you please tell me, in case that we have KAM and EOM paragraph what would be the order of those paragraphs in the auditor's report? Opinion Basis of opinion Material uncertainties related to going concern KAM EOM or Opinion Basis of opinion Material uncertainties related to going concern EOM KAM

EOM can go anywhere, apparently - either before or after the KAM