Hi... I work for a large university. The fixed assets of this university have been revalued in 2015 and the revalued figures have been taken to the books of accounts on 01.01.2016. But, later on, a lot of mistakes have been detected which have been resulted while the revalued figures are being entered to the system. Therefore, the assets have been mistakenly overstated by a massive USD 1,400,000. Although the errors have been identified in 2017, no any adjustment has been passed in order to correct the error. Is it okay to pass entries to correct this prior period error of USD 1,400,000 in the financial statements as at 31.12.2019 ? Will there be any negative consequences if I do so? Will it result in any audit queries? Please give me an answer.
