Auditors’ reports proposals

Generally 1 mark each comment on suitability and 1 mark each conclusion (alternative, if any)

Ideas

(a) Going concern (ISA 570 reporting implications)
(b) Change in accounting policy – inadequate disclosure
(c) ‘Other information’ (ISA 720)
(b) Subsequent event (ISA 560)
 • Disagreement vs limitation
 • Material vs pervasive
 • Statutory/professional requirements
 • Relevant IFRSs (IASs 1, 8, 36, IFRS 3)
 • Disclosure (adequate?) ==> disagreement
 • Evidence (sufficient?) ==> limitation
 • Validity of senior’s argument/justification
 • Alternative proposal ==> Conclusion

(a) max 5
 (b) max 6
 (c) max 4
 (d) max 5