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Hi all,
So I have revised everything, all on OT, BPP Mocks, Past Exam papers, Specimen papers etc..
And still I find issues in Audit procedures and Substantive procedures, have also read the ACCA technical articles and watched videos by ACCA, but still unsure at times of the exact verbs and definitions used to elaborate that ‘Substantive’ OR ‘Audit’ procedure
Any 1 here with the same issues, how to be to the point, precise & accurate in this with the correct wordings like the examiner’s answers. ??
You should bear in mind that the examiners answers were well planned and thought and were not drafted under exam conditions. As such these model answers are tutorial in nature
so dont worry about being as good as those answers in an exam condition. Your points should be relevant enough to make sense to the marker and you will score
As per ISA 500, substantive and audit procedures are audit tests designed to collect sufficient appropriate evidence relating to misstatements in the financial statements. Remember where the entity is having weak controls, there’s more susceptibility of misstatements and so more substantives are required
It include activities like reviewing, inspecting, tracing, agreeing to corresponding documents. These are for documentary evidence
May also include, analysing figures, enquiries with management, observing physical defect in assets, observing defects in physical procedure like inventory count, dispatching of orders in warehouse, analytical review
There are no hard rules for verbs to use, its just common sense, you review documents not observe or enquire them
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