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- April 14, 2019 at 10:12 am #512349
Hello Sir,
For PYQ JUNE 2013
Q1(a)(ii)Matters to be communicated to those charged with governance“– Also significant matters arising during the audit, as well as significant accounting adjustments.”
What are the significant matters that communicated to those charged with governance that mentioned by the answer besides the significant difficulties and deficiency that have been mention in the other answer?
And the significant accounting adjustment is related to the management made the change in the financial statement?
Thank you.
April 15, 2019 at 7:30 am #512653There are many matters that could be discussed with and/or communicated to TCWG – for example:
– concerning risks relating to fraud (there doesn’t have to be deficiencies in the system to make this worth discussion);
– concerning significant accounting estimates (not just adjustments) and accounting policies;
– concerning auditor’s independence or conflicts of interest;
– if the auditor is contemplating a modified audit opinion (the auditor would discuss it – not just give it).Re significant accounting adjustments – this could be discussing adjustments that have been made or are being proposed by management – or adjustments which the auditor advises should be made.
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