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Hello dear tutor…
I hope that you are well
I know that according to ISA 710 the auditor can(and is not required) refer to predecessor auditor’s report, as long as it is not prohibited by law or regulation (and it would be included in Other Matter paragraph)…
Is it correct to say:
1-we can refer to prior audit report if the report was unmodified or if it was modified but the matter is resolved?2-we cannot refer to prior audit report if the report was adverse or if it was modified but the matter remains unresolved?
Thank you….
‘…if the report was unmodified or if it was modified but the matter is resolved?’
– no mention … but MAY include an emphasis of matter paragraph
‘ if the report was adverse or if it was modified but the matter remains unresolved?’
– no. This is the situation where you DO mention if the previous opinion was qualified and the matter is still unresolved
Hello again…
Let me say what I understand from your reply:1-You mean if the previous opinion was qualified and the matter is not resolved,the auditor CAN(and is not required to)refer to previous report but if they choose to refer,they SHOULD state in emphasis of matter paragraph that the previous opinion was qualified and the matter remains unresolved…
Is it correct?
2-and if the opinion was unmodified or modified but the matter is resolved,the auditor CAN(and is not required to) refer to prior audit and if they choose to refer,they MAY(not necessarily) state in emphasis of matter paragraph that the opinion was unmodified or modified and the matter was resolved….
Is it correct?
‘1-You mean if the previous opinion was qualified and the matter is not resolved,the auditor CAN(and is not required to)refer to previous report but if they choose to refer,they SHOULD state in emphasis of matter paragraph that the previous opinion was qualified and the matter remains unresolved…
Is it correct?’
NO – that is exactly opposite to what I wrote
Here it is again:
‘ if the report was adverse or if it was modified but the matter remains unresolved?’
– no. This is the situation where you DO mention if the previous opinion was qualified and the matter is still unresolved
‘2-and if the opinion was unmodified or modified but the matter is resolved,the auditor CAN(and is not required to) refer to prior audit and if they choose to refer,they MAY(not necessarily) state in emphasis of matter paragraph that the opinion was unmodified or modified and the matter was resolved….
Is it correct?’
Correct
Excuse me…
In ACCA-P7-Dec 2011-Q5-bii the prior opinion was modified and the matter was resolved…
In the answer it is said that the auditor can refer to prior report in OTHER MATTER paragraph…
But you said:”….may include EMPHASIS OF MATTER PARAGRAPH…”
Which one should we use?EOM or OM?
Thank you very much in advance and I hope this was the last question in this topic…
When did the new format audit report standard come into force?
And what date is this exam that you’re quoting at me?
Need I say more?
Where a standard is issued and included in the ACCA P7 syllabus for the first time in September 2016, what makes you think that publishers will go back for 5 years to change their answers to bring them in line with the new standard?
It’s not going to happen!
Thank you….
It was my mistake as I forget to think to new standard in this case…
I have studied the new standard about report….but forget to apply it here…
And you did it for me…
Many many thanks again for your up to dated advices
Hello…
Is it correct to say:
Q1)If prior period FSs were not audited, the auditor CAN(not necessarily) explain this in EOM?(or are they required to mention to this)Q2)if information about the prior periods are not available, the auditor should modify the report( qualified except for or disclaimer of opinion according to pervasiveness) and SHOULD mention to this in EOM?
Thank you….
‘Q1)If prior period FSs were not audited, the auditor CAN(not necessarily) explain this in EOM?(or are they required to mention to this)’
It would be most common to mention it and modify this year’s audit report in respect of the comparative figures
‘Q2)if information about the prior periods are not available, the auditor should modify the report( qualified except for or disclaimer of opinion according to pervasiveness) and SHOULD mention to this in EOM?’
‘… and SHOULD NOT mention this in EOM?’
No EOM if a disclaimer!
For Q2 you mean we donot have EOM for disclaimer and we donnot need to EOM for qualified except for in this case….is it correct?
Thank you
An EOM is to be used to draw the reader’s attention to some matter that is already fully and appropriately disclosed within the financial statements
Which bit of ‘prior year not audited’ or ‘prior year not audited by us’ would you expect already to be fully and appropriately disclosed in the financial statements?
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