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MATERIALITY LEVEL OF AUDITOR
11-08-2010, 06:21 PM
Post: #1
MATERIALITY LEVEL OF AUDITOR
Aslaam u alaikum!

Dear All ,

Pls notice that

Iff the company financial year is july to june and within befor AGM and BOD-M an event has arise that the company want to discontinue the out of country operations and sales that out side branch.

I want to know that will such event effect the materiality level of the auditor?? In this situation an should change its materiality level???

Rgrds

UM@R
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11-08-2010, 07:59 PM
Post: #2
 
is the event after the signing/approval of accounts?
if before the accounts....then u have to just see how big/material the branch is keeping in view the current materiality...and give a disclosure

if after the accounts, and the event very very material........then u can speak at the AGM
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11-09-2010, 03:45 PM
Post: #3
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by noman</i>
<br />is the event after the signing/approval of accounts?
if before the accounts....then u have to just see how big/material the branch is keeping in view the current materiality...and give a disclosure

if after the accounts, and the event very very material........then u can speak at the AGM
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear Noman bhai,

is it the responsblity of auditor for such material in above case, if the accounts hv been signed??
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11-09-2010, 04:41 PM
Post: #4
 
yes....it is not his responsiblity (in accordance with terms of engagement) per se....its his duty as a professional (including due to public interest) that he ensures that management communicates this matter to its shareholders (in case there is no time to revise the accounts) and if management does not communicate he should speak at the AGM to communicate this to the shareholders..(after seeking legal opinion..not sure)
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