- This topic has 2 replies, 2 voices, and was last updated 6 years ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Material and pervasive
Hi sir, what does it mean by PERVASIVE? And how do we tell if an error is pervasive?
I have understood how to determine if an error is material or not . But im very confused when it comes to PERVASIVENESS.
For example, a company has a profit before tax of $10m. And depreciation of $0.7m has been charged to the land element of property,plant and equipment.
It’s stated in my exam kit, that this error above is MATERIAL BUT NOT PERVASIVE.
I understand why it’s material. But i dont understand why it’s not pervasive.
Could you explain sir?
Pervasive means so serious as to more or less undermine the whole FS so that they are useless. There is no hard and fast rule material/material and pervasive.
Material but not pervasive means the error and its effect can be isolated and explained in an except..for qualification.
Okay got it sir. Thank you.