Question 3c
Marking Guide
Pine Co
Generally 1 mark per matter explained:
– Consider whether change in estimate is valid
– Incorrect accounting treatment used (up to 2 marks for detailed explanation)
– Insufficient notes to the financial statements
– Discuss with management and encourage amendments
– Opinion to be qualified ‘except for’ due to material misstatement
– Description of reason for qualification to be provided in auditor’s report
Maximum marks 5