a.
Introduction : ‘A’ restated its financial statements for the years ended 31 December 2014 and 2015 as well restated unaudited quarterly financial data for fiscal year 2015 for the first three quarters of 2016 due to the reporting of two errors reported in their historical consolidated financial statements.
To ascertain: The two main reasons for A’s restatement and reasons for judging these issues as material, requiring restatement of financial statements.
b.
Introduction: Restatement of financial statements is a clear indication that the results which were presented in prior period had been materially misstated.
To state : Implication of restatement on financial reporting quality and audit quality.
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