Review and Reporting
Subsequent events, going concern, written representations, final review, misstatements, audit opinions and report modifications.
How to study ACCA Applied Skills
Build on Applied Knowledge, use the correct UK law and tax versions, practise workplace-style digital responses and keep each independent 50% pass decision visible.
Core concepts
Concept 1
Completion procedures evaluate subsequent events, going concern, uncorrected misstatements and overall statement presentation.
Exam cue: Classify the event or issue and determine the required accounting treatment first.
Concept 2
The audit opinion depends on whether a material issue is misstatement or inability to obtain evidence and whether it is pervasive.
Exam cue: Assess materiality and pervasiveness before choosing opinion wording.
Concept 3
Emphasis, other-matter and key-audit-matter communication do not substitute for a required modified opinion.
Exam cue: Separate opinion modification from additional communication paragraphs.
Risk pitfalls and guardrails
Using an emphasis-of-matter paragraph to avoid qualifying the opinion.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Treating every subsequent event as an adjusting event.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Accepting a written representation as a replacement for available audit evidence.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Memory anchors
Adjusting Event
An adjusting event provides evidence of conditions existing at the reporting date.
Going Concern
Going concern assessment considers the entity's ability to continue for the required future period.
Qualified Opinion
A qualified opinion applies to a material but not pervasive misstatement or evidence limitation.
Adverse Opinion
An adverse opinion applies when material misstatements are pervasive.
Disclaimer
A disclaimer applies when a pervasive possible effect arises from inability to obtain sufficient appropriate evidence.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What is an adjusting event after the reporting period?
Three weeks after reporting date, an accidental fire destroys inventory that existed intact at year end. If the loss is material, how should the event normally be reflected?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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