Correcting prior period error

[Al-Mahamud]

Dear Brother, what would be the journal entry of the unrecorded bank balance and land?

The previous author skipped that

According to me:

Cash at bank-Dr
Land-Dr
Retained earnings- Cr.

In addition, if the amount is material, should I give a retrospective adjustment as per IAS-8? Or I can only adjust it with the retained earnings?

[Marek Muc]

Dear Brother,
[...]

Should we wait for your brother's response, or is it alright for other community members to share their views?

PS. you'll notice that I changed this topic's title, please don't use generic titles like "IAS 8"

[Al-Mahamud]

Sorry. Please let me know the solution. Thank you

[Marek Muc]

It's hard to comment on these entries without knowing the underlying scenario. Retrospective restatement is necessary for material errors. I recommend checking out this knowledge base article: https://ifrscommunity.com/knowledge-base/errors/

[JRSB]

Seems odd that bank accounts and land would be 'skipped', sounds like a comprehensive review is needed...maybe you have unrecorded liabilities or revenue too...

[Al-Mahamud]

What would be the solution if as an auditor we do not have relevant information and the client is not willing to give that?

[Marek Muc]

This should be deemed as limitation on scope. Refer to ISA 705 or your local equivalent auditing standard.

[JRSB]

I would think a limitation would be generous, I would think some qualifications were in order, all depends.

[Al-Mahamud]

Now, is it okay to add the land value and bank balance with retained earnings as the prior year errors adjustment and qualify the opinion?

[JRSB]

It's impossible to comment without knowing a lot more information. If you're the auditor here you should probably speak to a partner.

[Marek Muc]

I would think a limitation would be generous, I would think some qualifications were in order, all depends.

As I understand, limitation can lead to a qualified opinion or even disclaimer of opinion (ISA 705.11-13)