question archive The auditors client has not consolidated the financial statements of a subsidiary company that it acquired during the year ended 31 March 2020
The auditors client has not consolidated the financial statements of a subsidiary company that it acquired during the year ended 31 March 2020
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The auditors client has not consolidated the financial statements of a subsidiary company that it acquired during the year ended 31 March 2020. The client has not yet been able to ascertain the fair values of certain of the subsidiary's assets and liabilities, which are material to the group at the acquisition date.
Question:)State what type of opinion should be formed by the auditor for this situation and briefly describe the basis of issuing such opinion.
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Qualified Opinion
Step-by-step explanation
Since the subsidiary's assets and liabilities' fair values are MATERIAL to the group but cannot be ascertained yet, it will surely affect the decisions of the users of the Financial Statements.
