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Hello Sir,
FoR PYQ DEC2011,Q5 PART B(iii)
for the warehouse, the answer included
“If the impact of the uninsured level of inventory is such that the company’s going concern status is impacted, consideration should be given to modifying the audit report opinion. This would involve including an emphasis of matter paragraph drawing attention to the possible risk in relation to going concern.”1)Is it the modified audit report opinion refer to the adverse opinion in the answer ? as it’s pervasive that going concern status is impacted.
2)The answer refer to using EOM ,but the EOM is used to refer to a matter that have been appropriately presented or disclosed in the FS however the question state that no disclosure have been made,why the EOM still applicable at here?
Thank you.
You have to take care using past questions as published by ACCA because they are not updated. Changes to the requirements of the reporting ISAs were examinable from September 2016 – so answers to any reporting-related questions before then are potentially obsolete. This is one of the reasons we strongly recommend that you purchase a current ACCA approved revision kit.
MURGC which replaced EoM in respect of going concern is explained on page 32 of the notes.
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