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Could you please explain the following in a simple manner?
In certain circumstances, a statement is required in either an EOM( Emphasis of matter) or Other matter para under ISA 560
A) Where law, regulation or the fin reporting framework doesn’t prohibit management from restricting the amendment of the financial statements to the effects of the subsequent events or events causing that amendment and those responsible for approving the financial statements are not prohibited from restricting their approval to that amendment, the auditor is permitted to restrict the audit procedures on subsequent events to that amendment.
B) Where a reference is required referring to a not to the financial statements that more extensively discusses the reason for the amendment of the previously issues financial statements and to the earlier report provided by the auditor.
What exactly is the crux of the aforementioned? Thanks for the help.
Where the directors are allowed to restrict detailed information about subsequent events that have caused an amendment to be made to financial statements that have already been issued then the auditors need not go into greater detail / depth than the restricted information.
Your second point appears to be missing a verb / a question
Ok?
Thank you sir, got the first point.
The second one is : Where a reference is required referring to a note to the fin statements that more extensively discusses the reason for the amendment of the previously issues financial statements and to the earlier report provided by the auditor.
I had typed not in place of note inadvertantly 🙂
No, Chandini, that wasn’t the issue! I had understood that you meant note 🙂
The issue is that there is no verb / no question within your second point neither as originally typed nor in your second edition!
I’m sorry about this – it appears that I am being pedantic. But I’m not. I genuinely cannot understand your question …… because there is no question!
Do you mean “When is a reference required ……?”
This the what the BPP textbook reads sir:
In certain circumstances, a statement is required in either an EOM( Emphasis of matter) or Other matter para. These are required under ISA :
B) Where a reference is required referring to a note to the fin statements that more extensively discusses the reason for the amendment of the previously issued financial statements and to the earlier report provided by the auditor.
🙂
Hi, ok, that’s no better! Where it says “B)” is there an “A”? And what comes before the “A”?
This looks very like a multiple choice question with four options. If so, I’m missing the stem for the four options
But now I’m asking myself “What is an mcq doing in P7?”
Haha no sir. You’ve got it wrong. I had originally posted points A and B for clarification. You cleared point a but couldn’t understand point b, so I posted just point b again. 🙂 I am posting the entire query once more. Please explain point b in simple terms. Thanks 😀
In certain circumstances, a statement is required in either an EOM( Emphasis of matter) or Other matter para. These are required under ISA 560:
A) Where law, regulation or the fin reporting framework doesn’t prohibit management from restricting the amendment of the financial statements to the effects of the subsequent events or events causing that amendment and those responsible for approving the financial statements are not prohibited from restricting their approval to that amendment, the auditor is permitted to restrict the audit procedures on subsequent events to that amendment.
B) Where a reference is required referring to a note to the financial statements that more extensively discusses the reason for the amendment of the previously issued financial statements and to the earlier report provided by the auditor.
Ah! Now I understand! The word following “B)” ie the word “Where” should not have a capital letter. It’s a continuation of the stem “These are required under ISA 560 where a reference is required ……”
When the auditor wishes to draw the readers’ attention to a matter that is already fully disclosed within the notes to the financial statements, the auditor is able to do that in either one of two ways.
It may be done by way of full detailed explanation within an emphasis of matter paragraph or it may be done by simply referring the reader to the detailed explanatory paragraph within the notes
Is that better?
You’re welcome – I’m sorry that it took so long for me to understand the question!
No problem at all sir. 🙂 Am self studying P7, and I speak English as my second language. So sometimes it become difficult for me to figure out what exactly the author is trying to convey when he/she doesn’t punctuate the sentences!
Agreed! English IS my first language yet I too sometimes have difficulties understanding what is meant!
Yes sir. Thats precisely why I pestered you. I didn’t want to assume things, so wanted to clarify. As it is the language used is difficult to decipher; things get worse when he blatantly ignores punctuation. 🙂
We set this site up specifically to assist accountancy students around the world by answering their questions (amongst other assistance). Your questions on this site are a consequence of us openly inviting you to ask and cannot therefore be classified as “pestering”
When you have a problem, ask! We will always come back to you and help if we are able 🙂
Haha yes. OT is really helpful and I am grateful to all of its lecturers. 🙂
Btw, should I focus more on the text or the kit, sir? I don’t intend on just barely passing the exams. I have been scoring good marks so far, and would like to score well in this paper too. So what approach should I adopt towards studying P7? Thanks again 😀
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