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Ashmi Shettyashmi shetty asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

Suppose 20 branches / subsidiaries are unaudited for standalone / consolidated financial statements.
Auditor should see % Contribution to Revenue / Assets / Cash flow / Profits  of these Components, these will be called quantitative factors.
Then Auditor should also see whether these components are having new business / discontinuing business / special laws applicable to them / fraud risk / history of fraud / discussed amongst users / popular in media etc these will be qualitative factors.
if as per quantitative or qualitative factors important component is left out then, auditor may qualify or if required give disclaimer  

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