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Shyam asked 1 year ago

Whether modifications or observations in component auditors report are compulsorily required to be included in parent auditors report on CFS OR whether he can apply materiality considerations on that also,  to select whether it should be reported in consolidated financial statements or not

1 Answers
RaviRavi Staff answered 1 year ago

Guidance note on consolidation was revised in august 2016
it said include modifications of components irrespective of materiality
practice manual included above point, from there this answer was pasted at many places by icai
in may 2017 icai amended guidance note specifying, modifications should be included subject to materiality as given in SA 600
so situation as on today is include it subject to materiality at group level 

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