Question
Company owns several commercial buildings where the sales outlets are established. Due to the effect of the COVID-19 pandemic, the value of these buildings has
Company owns several commercial buildings where the sales outlets are established.
Due to the effect of the COVID-19 pandemic, the value of these buildings has been
substantially diminished and therefore, there is a need to impair the building values. The
required impairment is above the materiality threshold. However,
directors refuse to impair the commercial building, arguing that this pandemic is just a
temporary situation and the market will return to normal very soon, despite you
explaining that this refusal to impair will put the company in breach of the requirements
regarding impairment tests contained in Australian Accounting Standards.
what auditor'sopinion would you issue, assuming that you were able collect sufficient appropriate auditevidence to conclude that other financial statement items are free from materialmisstatements.
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