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June 2015 Q3 (Audit Report)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › June 2015 Q3 (Audit Report)

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.
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  • June 3, 2016 at 11:11 am #319101
    mpatel14
    Member
    • Topics: 19
    • Replies: 20
    • ☆

    Hi,

    I wanted to get some clarification regarding this question.

    Regarding Palm, I understand that a qualified opinion paragraph would be needed. Opinion paragraph is qualified, except for.

    Ash Trading is also qualified, except for. As inventory represented 21.3% of profits, I thought this would have been pervasive as its effecting the profits by a large number. What would the question need to be to make the answer a disclaimer of opinion for Ash Trading?

    Thanks

    June 3, 2016 at 3:47 pm #319153
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10648
    • ☆☆☆☆☆

    Whether something is pervasive is a matter of judgement, but a disclaimer off opinion means that the FS are rather useless. Therefore disclaimers or adverse opinions are last resorts.

    If the effect can be reasonably isolated then ‘except for’ is more normal.

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