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1 suppose the company is running for many years but his year they applied new accounting standard.every thing is ok and also company has disclosed adoption of new accounting standard by notes in the financial statement
at this time will there be emphasis of matter paragraph below opinion paragraph?
2 suppose the company is running for many years but his year they applied new accounting standard.every thing is ok but company has not disclosed adoption of new accounting standard by notes in the financial statement
what will the audit be if management including audit committee did agree to disclose by note regarding the adoption of new accounting standard ?assume that there is no other material mistake except undisclosed?
there is two question 1 and 2
1 – yes, I can see an emphasis of matter being included within the audit report
2 – can I ask that you re-read your second question and confirm that you have not omitted a word?
Let me know
yes sir i read it I omitted report which should be after audit and is should be audit report and management and audit committee did not agree to disclose it in the financial sataement
suppose the company is running for many years but his year they applied new accounting standard.every thing is ok but company has not disclosed adoption of new accounting standard by notes in the financial statement
what will the audit report be if management including audit committee did not agree to disclose by note regarding the adoption of new accounting standard ? and any other things in basis of qualified opinion or adverse opinion.assume that there is no other material mistake except undisclosed?
It’s an “except for disagreement” – it could even be an “adverse” opinion
For example, if the changed policy was “not to include the subsidiary” in the group accounts, that’s likely to be pretty material
But it’s certainly material and therefore leads to a qualified opinion
It’s what’s called a “qualitative” misstatement rather than a “quantitative” one
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