Sammyboy RSS Feed
21-02-2014, 05:00 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
The nomenclature used in the Singapore Standard on Auditing SSA 700 “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements” and SSA 701 “Modifications to the Independent Auditor’s Report” deals with the auditor’s responsibility to form an opinion on financial statements, using a section with headings ranked in order of severity such as:
Unqualified Opinion
The auditor “concludes that the financial statements give a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.”
Emphasis of matter (EOM)
This is to "highlight a matter affecting the financial statements which is included in a note to the financial statements that more extensively discusses the matter. The addition of such an emphasis of matter paragraph does not affect the auditor's opinion.”
Qualified Opinion*
This is expressed when the "auditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion.”
Disclaimer of Opinion*
It is expressed when the "possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements."
Adverse Opinion*
It is expressed when the "effect of a disagreement is so material and pervasive to the financial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.”
* - with or without EOM (Emphasis of Matter)
It has now surfaced, and confirmed by the People's Association (PA) this morning ("PA responds to online reports on its accounts"), that the PA accounts for 2008 through 2011 have been slapped it with an "Adverse Opinion" by auditors, year after unrepentant year. That's auditor lingo saying that PA financial statements do not present the true state of affairs of the Association. Specifically, the financial position of the 1,803 (as at 31 March 2011) grass-roots organisations (GROs) under its purview are not consolidated, and no audited financial information of the entities under its control are available.
Apparently Workers' Party chief Low Thia Khiang did raise a red flag in 2008, but the blinkered eyes of Parliament decided it "was fully responded to." Nevertheless, their spokesman is now responding with a confessional,
- http://singaporedesk.blogspot.sg/201...low-money.html (http://singaporedesk.blogspot.sg/2014/02/follow-money.html)
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?175508-LKT-was-brushed-aside-in-parliament-in-2008-when-he-raised-PA-accounting-issues&goto=newpost).
The nomenclature used in the Singapore Standard on Auditing SSA 700 “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements” and SSA 701 “Modifications to the Independent Auditor’s Report” deals with the auditor’s responsibility to form an opinion on financial statements, using a section with headings ranked in order of severity such as:
Unqualified Opinion
The auditor “concludes that the financial statements give a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.”
Emphasis of matter (EOM)
This is to "highlight a matter affecting the financial statements which is included in a note to the financial statements that more extensively discusses the matter. The addition of such an emphasis of matter paragraph does not affect the auditor's opinion.”
Qualified Opinion*
This is expressed when the "auditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion.”
Disclaimer of Opinion*
It is expressed when the "possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements."
Adverse Opinion*
It is expressed when the "effect of a disagreement is so material and pervasive to the financial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.”
* - with or without EOM (Emphasis of Matter)
It has now surfaced, and confirmed by the People's Association (PA) this morning ("PA responds to online reports on its accounts"), that the PA accounts for 2008 through 2011 have been slapped it with an "Adverse Opinion" by auditors, year after unrepentant year. That's auditor lingo saying that PA financial statements do not present the true state of affairs of the Association. Specifically, the financial position of the 1,803 (as at 31 March 2011) grass-roots organisations (GROs) under its purview are not consolidated, and no audited financial information of the entities under its control are available.
Apparently Workers' Party chief Low Thia Khiang did raise a red flag in 2008, but the blinkered eyes of Parliament decided it "was fully responded to." Nevertheless, their spokesman is now responding with a confessional,
- http://singaporedesk.blogspot.sg/201...low-money.html (http://singaporedesk.blogspot.sg/2014/02/follow-money.html)
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?175508-LKT-was-brushed-aside-in-parliament-in-2008-when-he-raised-PA-accounting-issues&goto=newpost).