Change in accounting policy

There need be no effect on the audit report provided the change in in line with the relevant accounting standard.

Changes in accounting policy are retrospective so that opening figures and comparatives have to be restated. The company also has to be able to argue that the new policy is better. The change has to be disclosed in the FS.

Provided all is OK, the audit opinion does not have to be modified. If, for example, the change in policy was carried out incorrectly then an mdified opininowoudl be needed because the FS were not drawn up in accordance with the the accounting standard.

Changes in accountng policy are not normally important enough to warrant and EoM paragraph. EoM

An EoM is a paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s judgment, is of such importance that it is fundamental to users’ understanding of the financial statements.

There is normally no need to disclose this in an EoM paragraph. I think that is what I said in my previous post. Generally at F8 EoMs are associated with going concern problems.