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Hi Sir Mike!
If on the exam we mention that ‘profits will be overstated’ instead of ‘finance charge will be understated’ do we lose any mark if the latter was on the marking scheme instead?
Thanks.
KyleHi Sir Mike!
Is it also allowed for an early application of a particular standard if the audit client so wishes and where it will have a material misstatement on the FS?
What would the audit opinion be in this case?
Thanks!
KyleIn answer to your first post, why would you not say that “because of the understatement of the finance costs, this will result in an overstatement of profits for the year by $XXXX”?
Surely it must always be preferable to quantify the under / over statement and explain the effect
In answer to your second post … I’m not sure how the early adoption (often recommended!) of a new / revised standard could lead to a material misstatement!
And why would delaying the adoption of this new / revised standard not also give rise to a material misstatement?
I don’t believe that you thought that question through before you posted it!
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