• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Material v Pervasive in Modified Opinion

Forums › ACCA Forums › ACCA AAA Advanced Audit and Assurance Forums › Material v Pervasive in Modified Opinion

  • This topic has 3 replies, 3 voices, and was last updated 12 years ago by Anonymous.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 27, 2012 at 8:31 am #55806
    temesgen
    Participant
    • Topics: 5
    • Replies: 34
    • ☆

    Any one who can advise me the difference between the two, what items will have pervasive effect by nature, should all the financial statements be affected by the misstatement/limit of scope to be considered as pervasive. For me when there is a material mistatement in inventory, many items will be affected, cost of goods sold, profit/loss, then equity…so pervasive. but in many examples misstatements in inventory are considered only as “Except for”…..

    November 28, 2012 at 10:04 am #108857
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 3
    • ☆

    hello,
    based on my understanding, pervasiveness is not determined by single material misstament. it is considered pervasive when the misstatement result to the whole FS is pervaded and could not be relied upon. u can refer to article – “a matter of opinion” issue 09/2010. however for exam purpose, u can just make assumption that if the item is pervasive, an adverse or disclaimer of opinion will be issued. if there is unlikely that an adverse opinion is necessary, then a qualified ‘except for’ opinion would appear more appropriate. pls correct me if im wrong

    November 30, 2012 at 6:21 am #108858
    temesgen
    Participant
    • Topics: 5
    • Replies: 34
    • ☆

    thank you for your clarification hajamuslim. FYI a single material misstatement can be considered as pervasive if it constitutes a significant part of the group asset, group revenue or profit. for instance if a subsidiary asset that is 80% of the gruop net asset is materially misstated, it is pervasive.

    December 1, 2012 at 10:41 am #108859
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 4
    • ☆

    I agree with temesgen that a single transaction can be pervasive in an entity.

    If a balance is going to change a profit to significant loss
    If an event will move a client to insolvency/cashflow issue/going concern

    In a group…
    Just think of enron and assume the loss making subs is one.

    May be wrong pls advice if so

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Kim Smith on AA Chapter 9 Questions
  • Walkera on Basic Variance Analysis part 1 – ACCA Performance Management (PM)
  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Josfel on Relevant cash flows for DCF Taxation (example 4) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in