top of page
Search

Prior year error

When there was a judgement made in prior year without concrete evidence of support. The audit should have qualified it.


When in subsequent year, the judgement is changes with the intention to correct the error whereby no new information or evidence available. The judgement should be a correct of error in prior year. It should be a prior year adjustment to correct the error in judgment.


It is not a change in judgment as the judgment made in prior year was an error.


Reference FRS8 para 41

 
 
 

Recent Posts

See All
Revenue completeness

The golden rule - revenue completeness can never ever be ascertained from issued sales invoice. Revenue completeness should be ascertained from fulfilled order, contract or delivery note. It should

 
 
 
Audit thinking logic

What are we going to audit - revenue, trade receivables, unquoted equity investments, trade payables, etc What audit procedures (nature, timing) to be performed to ascertain each of the assertions Wha

 
 
 
Audit schedule provided by client in audit

Before we place reliance on audit schedule provided by client in an audit engagement, we are required to ensure the completeness and accuracy of the audit schedule. In order to address the issue, we n

 
 
 

Comments

bottom of page