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Sorry for asking this question. But if the event is an adjusting event, however it is immaterial, do we need to amend the audit report if directors refuse to amend?
Can i use audit precedure like recast for subsequent event question.
For example inventory in a warehouse was flooded and cost of inventory is $1m. the NRV now is $0.1mil.
So the audit precedure is “obtain a schedule showing the the inventory records in the warehouse and recast the total value of inventory in the warehouse to ensure mathematical accuracy”The audit opinion will not be modified if the misstatement is immaterial.
Yes it might well be relevant to recast a schedule. The write down of inventory may either need to be disclosed by way of note or put through the FS (depending on when the flood occurred). Either way it will be necessary to audit the amount of the write down and reperforming casts would then be important.
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