Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Question Q#66 Pluto
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- May 20, 2017 at 11:54 pm #387183
In the emphasis of matter paragraph , the directors have not decided to disclose eps figure…is it right to include eomp here as this matter is not disclosed or presented in the f/s..where as in eomp all the matters that are appropriatly disclosed are highlighted..will be waiting for the reply..thanks
May 21, 2017 at 6:38 am #387200This is the engagement partner’s proposed audit report!!!!
The question is asking you for a critical appraisal so it’s actually leading you towards recognising the inappropriateness of the Emphasis of Matter paragraph
You are correct – non-disclosure of the omission would rule out the possibility of an EoM
In addition, the question identifies that the reason for non-disclosure is because the directors feel that “the figure is materially distorted” – by the question’s own admission, it’s a material matter! But eps is a material matter anyway and is required to be disclosed (both basic and diluted)
This failure by the directors to disclose should lead to a qualified audit opinion.
It’s not pervasive, but it is certainly material and should lead to an “except for’ qualification
OK?
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