Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › writing substantive procedures
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- May 25, 2017 at 1:08 pm #388019
In questions where they ask for audit evidence that needs to collected by the auditor,if we dont know the name of a document which we want to refer to can we beat around the bush?say for example in qs Snipe 6/12 we need to describe the evidence procedures in regard to a self constructed non current assets that is a processing area
And i stated a procedure likeReview the relevant document which state the date when the asset was complete with the construction to confirm that depriciation and borrowing costs are valued correctly.
Instead the marking scheme mention completion certificate.
a)So will i be awarded if i am nt able to write the correct name of the document?will i lose any marks for not providing the correct name?
b)Also could you please tell me physically verifying the newly built processing area to confirm the existence of the asset be considered as an evidence
May 25, 2017 at 1:37 pm #388035“a) So will i be awarded ….”
Yes, of course you will. You can’t, as a person resident in India, possibly know about the rigours of obtaining planning permission and the regular site inspection visits by the building inspector nor the joy of eventually receiving the completion certificate from the building services and planning department at the local town hall
Of course you’ll get the marks for writing about “the relevant document which state the date when the asset was complete with the construction”
“b) Also could you please tell me physically verifying the newly built processing area to confirm the existence of the asset …”
How else can you confirm that the building exists? Of course that’s valid evidence
Remember for your F8 days the 5 ways of collecting evidence?
Analytical procedures, enquiry, inspection, observation, recalculation
Physical inspection fits nicely into that third method
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