- Consider materiality of item. Consider the item in comparison with total of all class of items it relates to
- Consider the impact of departure in financial statements
- Check wither the departure has been properly disclosed and presented by ways of a note to financial statements
- Confirm whether the directors have the intention of correcting the departure by ensuring compliance in subsequent financial statements
- Consider reasons for departure from directors
- Consider whether the reasons for departure are justified
- Consider the possibility of the directors preparing revised financial statements with the correct financial statements i.e. statements that have complied with all the standards
- If the matter is material and the directors fail to do-operate to either revise the statements or disclose by way of note, the auditor should consider qualifying the audit report.
Wilfykil answered the question on February 23, 2019 at 07:30
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