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HI sir
I have couple of doubts:
1) when to give ‘except for’ opinion?
2) When to give ‘Emphasis on matter paragraph’?
3)when to give basis for opinion?
4)opinion paragraph?
5)KAM,
5)And Other matter paragraph?I think 1) Except for is given , when everything is right but only one thing is wrong
5) KAM is for listed entities and for significant matters ( How do we know matter is significant ?
6) Which is not related to FS can be law or litigation.?Thnaks
Apologies for having overlooked your post earlier.
For 1), there could be more than one thing wrong (i.e. “except for this and except for that and except for the other”) as long as the financial statements AS A WHOLE show a true and fair view.
2) EoM is explained on page 25 of the notes
3) Also on page 25 – there must ALWAYS be a “basis” para following the “opinion” para
5) KAMs are explained on page 27 of the notes
6) See page 25 of the notes. (I don’t know where you are getting “law or litigation” from or exactly what you mean by this. If there is a matter of pending litigation against the company which is ADEQUATELY disclosed in the financial statements, that would be a matter for an EoM. If not adequately disclosed, it would give rise to a qualified opinion.)
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