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1. when we answer questions (whether section A or B ) Do we need to know whether it’s immaterial or trivial ? . when it’s not material, can we just simply say immaterial ? and disregard trivial ? if this doesn’t really eat up the marks ?
2. in writing an answer for the audit procedure, is there a difference between inspecting the purchase agreement ( for e.g to confirm the brand cost) and the reviewing the purchase agreement or inspect the board minutes ( eg to confirm the approval of acquisition ) and reviewing the board minutes
3. Just from the most recent syllabus, for the EOMP (emphasis of matter paragraph), does it only appear in listed entity ?
Because i have seen an AAA video lecture where EOMP only exist in unlisted. Is it true ?1. See my response to your almost identical post here https://opentuition.com/topic/immaterial-trivial/
2. I would say inspect individual invoices and review a sequence/series of documents – the distinction is not really important – what is important is in each case you are saying what and why you are inspecting/reviewing.
3. NO – only KAMs are specific to a listed entity. Something that is an EoM for an unlisted company (e.g. a non-adjusting event) may or may not be a KAM for a listed company. As any matter is only reported in one place:
– if it’s a KAM, there will be no EoM in respected of this matter (but there could still be an EoM in respect of another matter;
– if it’s not a KAM, it’s an EoM.so in question 3, what you mean is that in listed entity, there could be both EOMP and KAM for covering different matters depending on the auditors’ judgement ?
and also, if they both appear in auditor’s report, which one would appear first ?
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