• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

F8 December 2011 Exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › F8 December 2011 Exam

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 18, 2017 at 2:29 pm #386842
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    For December 2011 Exam, question 5(b), regarding WAREHOUSE,

    it’s stated in the answer key that

    “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”.

    The audit opinion should be modified because if the company’s financial statements are prepared on the going concern basis when it’s going concern status is impacted, it basically means the financial statements don’t fully show a true and fair view right sir ?

    Another issue, they said modify the audit opinion by including an emphasis of matter paragraph. But an emphasis of matter paragraph is only included when the audit opinion is unmodified; because the financial statements in fact show a true and fair view but there is something that needs to be brought to the user’s attention by means of an additional paragraph. Am I right sir?

    It’s confusing. Could you please explain sir?

    May 18, 2017 at 5:17 pm #386876
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    First of all, emphasis of matter is no longer used if there is a going concern worry. Instead a Material Uncertainty Related to Going Concern Paragraph.

    That is used if there is some uncertainty as to going concern but drawing up the FS on a GC basis is still appropriate. This is a modified report but not a modified opinion.

    If the company has no realistic chance of survival (ie much more serious than uncertainty relating to GC), the FS should be drawn up on a break-up basis. If they are produced on a going concern basis then there needs to be an Adverse opinion ie a modified opinion because the FS clearly do no sow a T&F view.

    You cannot modify an opinion by using an EoM para. This modifies the report but not the opinion. The opinion is only one paragraph of the report.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • mrjonbain on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures
  • Aidos on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in