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The company issued 100,000 $1 ordinary shares in August 20X7. This is currently not reflected in the financial statements for the year ended 31 July 20X7.
If no changes are made to the financial statements which of the following audit opinions will be issued?
Unmodified opinion as the share issue occurred after the year end
Qualified opinion as the financial statements are materially misstated
Qualified opinion as the auditor has not gathered sufficient, appropriate evidence in respect of the share issue
Unmodified opinion with an Emphasis of Matter paragraph drawing shareholders’ attention to the share issue
The answer is B. I did A.
The answer is B because it should have been disclosed in notes but management have not.This is question of past exam which I have as it is copied from BPP kit
Tutor can you please help how we come to know that it is a material non-adjusting event. As there is no sign of material or immaterial is given. However, we can assess it is a non-adjusting event.Oh. Thank you.
It is the case for any non-adjusting event if it has not mentioned materiality?If there had been an option “Unmodified opinion as the matter is not material”, the Q would have had to provide you with information to work out whether or not it was material.
But that was not an option.
The option you selected was not correct, because the fact that it is after the reporting date is not correct.
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