ACCA AAA ^INT Syllabus D. Audit of Historical Financial Information - Modified Audit Reports - Notes ^{6 / 8}

It basically depends if the group auditor thinks it is material or not

If so - then the group accounts are qualified too

If not - then no effect

Examples:

• Group auditor can't get full access to sub

  • Disclaimer of Opinion in component

  • Except for paragraph in group

• Subs inventory is incorrectly valued

  It is material to the group also

  • Qualified "except for" in component

  • Qualified "except for" in group

• Going concern doubts over the sub

  It is material to the group also

  • Emphasis of matter paragraph in component

  • Emphasis of matter paragraph in group

• Going concern doubts over the sub

  It is NOT material to the group though

  • Emphasis of matter paragraph in component

  • No modification in group