Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit-related and assurance services

Fenwick & Co is the independent auditor of Daleview plc and has completed its ISRE 2410 review of the interim financial information. It found that a material provision required by the framework was omitted, and management refuses to adjust it. The effect is material but not pervasive. What should the review report contain?

The report should give a qualified conclusion using 'except for' wording and describe the omitted provision. ISRE 2410 requires a modified conclusion for a material departure from the framework. It would be adverse only if the effect were pervasive, and a disclaimer relates to scope limitations.

  1. AAn unmodified conclusion, since reviews cannot be modified
  2. BA qualified conclusion (except for) describing the departure from the frameworkCorrect
  3. CAn adverse conclusion, because management refused to adjust
  4. DA disclaimer of conclusion, because the provision cannot be measured

Explanation

ISRE 2410 requires a modified conclusion when a material departure from the framework exists. Because the effect is material but not pervasive, the conclusion is qualified using 'except for' wording. Adverse would apply only if the effect were pervasive; a disclaimer concerns scope limitation, not a known misstatement.

Did you get it right without looking?

One question tells you little. A timed set on Audit-related and assurance services shows your real accuracy, how long you take and where you lose marks.

Practise Audit-related and assurance servicesFree diagnostic mock

More Audit-related and assurance services questions