If subsidiary uses local accounting srandards and group uses IFRS or IAS, then when all parent and subsidiary companies are consolidated, what do group auditor do when they confront problems ?
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Query, parent company and subsidiary
7y ago#1You should know from FR(F7) that consolidated financial statements must be prepared using uniform accounting policies, so if a subsidiary uses accounting policies other than those adopted in the consolidated financial statements, management must make appropriate adjustments on consolidation. The auditor would then audit the adjustment(s).
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