Q.66 Pluto (BPP Kit)

In my view neither of these matters is pervasive so I think that you need to scrap your idea of an adverse opinion

I agree that both separately are material and, as such, both are the subject of a modified qualified opinion but neither of them is appropriate for an emphasis of matter paragraph

For the provision, the auditor disagrees with the management about a fact or an amount but this affects only two elements of the financial statements – provisions (liabilities) and wages expense.

So, two figures from the gamut of information that is otherwise acceptable in the mind of the auditor. Hardly a pervasive scenario

This is an ‘except for’ situation

As for the non-disclosure of EPS, again we are faced with a material matter of non-disclosure but again it’s hardly pervasive

OK?

“Emphasis of matter is used when items are appropriately disclosed but are important for users of financial statements” – yes, you are correct, particularly if you were to change the wording just slightly to “Emphasis of matter is used when items are appropriately disclosed but are considered to be so important that emphasis is in order so that the attention of users of financial statements is particularly drawn to those matters”

OK?

You’re welcome