Effect of Modification of Subsidiary audit report on Groups Audit report.

This topic has 3 replies, 2 voices, and was last updated 4 years ago by Kim Smith.

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September 4, 2021 at 9:18 pm #634353
parthbhanushali
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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)
September 4, 2021 at 9:54 pm #634355
Kim Smith
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Yes
September 4, 2021 at 11:23 pm #634359
parthbhanushali
Member
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Hi Sir,

Please confirm that there will be no impact on ANY PARAGRAPH of the group Audit Report in this case.
September 5, 2021 at 8:45 am #634386
Kim Smith
Keymaster
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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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