Subsequent Events

This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.

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August 8, 2017 at 11:26 pm #401087
ngaryitess
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Hello
Let us say an adjusting event requires a write-off of the inventory balance by $200,000. If the writeoff is not material with respect to PBT materiality level
but it becomes material based on the revenue materiality level:-

Do you then amend the financial statements?
August 9, 2017 at 7:04 am #401099
Ken Garrett
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If a matter is judged material under any criteria, the directors should alter the FS (auditors do not alter FS). If the F S are not altered appropriately the audit opinion will have to be modified.
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