Please let me know if following statement is correct:-
Material misstatement in subsidiary will impact the group auditors report only if it is above the materiality level of the group conso FS.
If material misstatement in subsidiary BOAs is not material for Group Conso FS, there will be no impact on Group Audit Report (no impact on opinion or other para)
This will be the case for all subsidiaries. Even for the significant components ( whose total assets or P/L is more than 15% of that of group)
Ask the Tutor ACCA AAA
Effect of Modification of Subsidiary audit report on Groups Audit report.
Yes
Hi Sir,
Please confirm that there will be no impact on ANY PARAGRAPH of the group Audit Report in this case.
None that i can think of - from the group financial statement and group audit perspective, no one is interested in what is not material to the group.
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