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Can anyone explain to me the implication of the group audit report if one of its subsidiary has a qualified opinion.
Should the audit report for the group be qualified also? If the subsidiary is not material should the group audit report contain an emphasis of matter paragraph?
Thank you
If a component’s audit report is modified it COULD have an affect on the group auditors’ opinion on truth and fairness of the group. But if the component is not material to the group, or if the mattergiving rise to the modification is not material in a group context then, no, the group audit report would not be qualified for that matter. It may be qualified for a different matter, but not the matter arising in the component.
In fact, if the component itself is not material to the group, it may be excluded from the consolidation on the grounds of immateriality! And again, no, it would not then be the subject of an emphasis of matter paragraph.
OK?
per opentuition tips..
whr cn i find the material misstatement risk article?
for group audits would ifrs 10-13 be examined?
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