- This topic has 1 reply, 2 voices, and was last updated 8 months ago by
Kim Smith.
Kim Smith.-
Posts
-
Noah098
- Topics: 936
- Replies: 352
- ☆☆☆☆☆
Customer liquidation
1st para: The amount owed by the customer of $287,253 is material to the loss before tax at 13.1% and to assets at 2%. The ‘except for’ qualification on the grounds of material misstatement is therefore appropriate. However, the details of the material misstatement should not be included in the KAM section at all but should be given in the basis for qualified opinion paragraph.
2nd para: This should also be clearly cross referenced within the opinion paragraph itself.
ma’am this is really silly, but I wanted to still confirm this: in simple words 2nd paragraph is trying to state that opinion paragraph should cross Refrence to the material misstatement included in the basis for qualified paragraph?
Kim Smith
- Topics: 87
- Replies: 6089
- ☆☆☆☆☆
It means the opinion paragraph should reference the basis of opinion paragraph for the description of why the audit opinion is what it is.
Noah098
Kim Smith- You must be logged in to reply to this topic.