Evaluation of draft auditor’s report

In general up to 1½ marks for each relevant point of evaluation:

– Incorrect presentation and combining of Opinion and Basis of

Opinion paragraphs

– Reference to materiality threshold is unnecessary
– Wording regarding ‘proven conclusively’ is inappropriate 
– Description of material misstatement should include quantification and impact on financial statements
– The relevant financial reporting standard should be referred to 
– Unprofessional wording regarding the finance director
– Inappropriate opinion given – should be modified due to material misstatement not due to disclaimer of opinion
– Level of modification incorrect – it is material but not pervasive
– Court case not fundamental so not appropriate to include in

Emphasis of Matter paragraph

– Emphasis of Matter should only be used for matters appropriately accounted for which is not the case

Maximum marks 12