Hi sir,
Regarding court case
The matter is immaterial i agree so should not be included in EOM para
But
As the lawyer syated the outflow is probable is should be treated as provision.
But the mgt dealt w it wrongly as contingent liab because they made a note in f/s
My question here if we assumed the matter is material
The mgt had made a disclosure(yes) the made a note
So can this matter be included in EOM para?
Thanks
Ask the Tutor ACCA AAA
Marr june 14
8y ago#1An EOM can NEVER EVER be used as a "substitute" for a qualified opinion.
Please see the published answer - if a matter is not material (so does not call for a qualified opinion), it does not get any mention in the auditor's report.
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