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  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • August 30, 2016 at 5:07 am #336141
    anu1234
    Member
    • Topics: 78
    • Replies: 65
    • ☆☆

    Group auditor can’t get full access to subsidiary

    What is the impact in group report and why

    August 30, 2016 at 8:00 am #336183
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23362
    • ☆☆☆☆☆

    Depends what the reason is! And whether the restriction is temporary or not. And whether the subsidiary is material to the group financial statements or not

    Not a question that is simply answered!

    August 30, 2016 at 9:57 am #336199
    anu1234
    Member
    • Topics: 78
    • Replies: 65
    • ☆☆

    How do you decide if a subsidiary is material to group ? For account balances and transactions we use benchmarks. What about subsidiary as a whole ?

    August 30, 2016 at 12:40 pm #336233
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23362
    • ☆☆☆☆☆

    Same again would be the ‘normal’ way – values / amounts / volume of transactions

    In the exam the examiner will give you relevant amounts that make it abundantly clear that the subsidiary is (or, rarely, is not) material

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