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When a new auditor is asked to take over a client’s audit ( not necessarily half way through the year as it may sound ) they should write to the existing auditor and ask if there are a”any professional reasons of which they should be aware before they make the decision to accept the directors’ invitation to be nominated as new auditors” The existing auditors should reply ( with the client’s permission ) and then the proposed replacing auditor can then make an informed decision as to whether or not to accept this invitation to be nominated
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Hi 🙂
when we use “other matter paragraph”
black – yes
yioula – when we want to bring the readers’ attention specifically to an existing note to the financial statements which we believe is REALLY important for a “proper” understanding of the financial statements.
NB – it is NOT a qualification, but it IS a modified audit report
at mike : that is an emphasis of matter paragraph
other matter paragraph is used to draw users attention to a matter which is NOT disclosed or presented in the Financial statement.
eg:
when reporting on more than one set of financial statements,or
restricting the use of audit reort..- Topics: 0
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If the parent company give a letter of support to one subsidiary that has a financial problems although that the letter is given as an auditor we have to check if parent company is able to support the subsidiary . If we find that the parent company is not able we will give unqualified opinion with emphasis of matter paragraph due to uncertainty or we will give qualified opinion due to disagreement “except for” if the matter is material or adverse opinion if is the matter pervasive ??? we audit the subsidiary!
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If a company’s going concern is threatened but receives a letter of financial support from the parent company, which is considered as sufficient evidence and which is adequately disclosed in the FS. Should we issue a clean, unmodified audit report or an unqualified, modified report, with an emphasis of matter relating to the note in the FS in respect of going concern.
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Unqualified Unmodified audit report. (Provided there is sufficient appropriate evidence that the parent company will provide financial support to the subsidiary, therefore, going concern assumption is appropriate, and disclosures are adequate.)
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Dear Sir ,
please provide us with the possible answers of p7int especially for q5thank you
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