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respected sir,
would you please help me to know about ‘financial statement assertions and audit procedures ..how are these two related ….??
looking forward for your kind response
Hi
I’m sorry but I’m going to have to refer you to the F8 course notes and lectures! This is a basic auditing topic
thank you sir for directing me towards right direction ..this is also is of help as now i know where to refresh
thank u once again
respected sir i have confusion whenever i start writing auditing procedures in any answer ,for that purpose i revisited the basic concepts i just wanted to confirm is that a good idea to spot the area/account balance in a given scenario ,think about the relevant assertion (e.g receivable ……>>>>existence >>>>and then relevant procedure ..???
is that way to go about it
kindly reply .
thank u
That sounds good (having not forgotten to consider materiality at the outset)
respected sir,,
could you please elaborate on the statement “considering materiality at the outset “” does this mean that we should not write everything we know about audit procedures and only
suggest them according to the materiality of the area in question ….sir please explain by giving one simple example .could you please suggest a comprehensive question including evidence ,,procedure ,,and materiality together from bpp revision kit
your kind response is of great help
thank u …Naina, there are occasions (frequent occasions!) when the examiner will provide you with situations to assess / analyse.
She will most often give you details of total asset value, profit for the year and revenue …. the three benchmarks against which to assess materiality
Very occasionally one of the matters that you are asked to look at is not material but students will still launch off into “everything we know”
One of your opening sentences should be your comment of the materiality of the matter and, very occasionally when it is clearly not material, you should state that fact but also state that, as auditor, you would make a note on the audit file, the folio for uncorrected errors, to determine at the conclusion of the audit whether the matter when aggregated with others is material enough to warrant amendments to be made to the financial statements
I have neither a BPP kit nor a Kaplan kit to hand – sorry.
However, if you were to take a brief look at past examinations should be able very quickly to identify typical questions asked in P7
thank you sir for these concise summary to my query .
I appreciate it very much .now that i m clear how to about such scenarios ,i m ready to attempt relevant questions in these areas from past papers and the kit too.
thank u once again.
Respected Sir,,
Could You please in advising which topics are most expected as current issues this june 2016.
I had a look on some ,such as
–debate for Ban on acceptance of Other Non audit services (this is always been discussed)
–Outsourcing Internal Audit Function
__…….Sir what else there could be …please specifythank u
These are the last 6 titles of articles within the P7 Technical Articles section on this site. They would seem to be a reasonable place to start!
Performance information in the public sector
Laws and regulations
Audit quality – a perpetual current issue
Professional scepticism
Using the work of internal auditors
Staying on the right side of ethics
respected sir,,
what is meant by the term principal audit procedures ,are these the same as the audit procedures we carry out .or different
please explain ,as in a question named Nassau Group,it says ..what are the principal audit procedures performed on the consolidation process.
please guide ,the term procedures itself is confusing me while practicing questions ..sometimes it asks for risk asssessment prodedures,principal audit procedures ,substantive procedures so on …i m getting mix up.
looking forward for your kind reply
“what is meant by the term principal audit procedures” – yes, they’re the same as the audit procedures
All these different “procedures” are a lovely way of saying “steps” as in “the principal audit steps” or “the steps involved in risk assessment”
You’re getting hung up on single word that is not SO loaded that it’s worth getting excited about
thank you ,
i think practicing so many questions is the only way to get the absorption of the topic clearly .
i will try my best .
respected sir,
i solved one question grissom from june 2010 it clears the audit risk assessment part and principal audit procedures .
thank u
respected sir,
could you please write general audit procedures when asked for auditing government grants ,what the documents involving govt grants are used ,what we should reperform to reconcile ,or may be schedules .i cant think of the documents that we can check ..
kindly also give us hint that when for any accounting standard ,how can we come up with for example ,agree amounts to what and with (like documents ,bank statements for cash figures ,receivable circularisations for recievables ..)but what about govt grants ,or employee benefits ,,and share based transactions and payments .
dear sir i dont know how clear i am with my questions to you .today i performed audit procedures in one question ,i read the answer and it said cast the figures from so and so schedule ..and other wordings in the procedures .i cant come up with right wordings to say a sentence for a procedure.
please help
Grant application form
Government rules before companies are eligible for grants
Calculations involved in submitting figures in the grant application
Correspondence with the independent advisor (if applicable) that has guided the company through the grant application procedure
Don’t worry about casting – recalculate will do. Or even just confirm the accuracy of additions and calculations
Employee benefits? Read and confirm that the benefit scheme rules are being followed and that the additions and calculations have been correctly carried out in accordance with those rules, schedule brought forward from last year’s audit file to confirm accuracy of information brought forward into this year, directors’ board minutes to confirm the detail of any past service cost award this year, obtain client’s schedule of settlements and curtailments and confirm accuracy of calculations and relevant details, communicate with actuary re fair value of assets and potential present value of future obligation
Share based transactions – directors’ board meeting minutes, shareholder approval (if applicable), constitution (to ensure that directors are not acting ultra vires), accuracy of calculations where vesting period is some years in the future, reasonableness of directors’ estimates of employees leaving each year, schedule brought forward from last year’s audit file to confirm accuracy of information brought forward into this year
Use your imagination! But don’t forget obvious ones like “correspondence with independent experts, additions and calculations, directors’ board meeting minutes, last year’s file for accuracy of brought forward values and for confirmation of consistency of treatment, vouch any scheduled cash payments to cash records, write to a sample of retired employees to confirm still eligible, review the company’s policies and procedures for confirming the continued life of their retired employees” (Japan, a couple of years ago, decided to check on the people in Japan claiming retirement pensions and discovered a number of them were apparently well over 120 years old!)
Let your imagination fly! Unshackle its bonds and let it soar!
OK?
thanks a billion Sir.
I genuinely appreciate the help that we all are receiving through you.Commendable
thank you.
respected sir,
audit risk and mateiality have a inverse relationship
could you please elaborate and justify the above statement by a simple example.
please help
thank u
What does the source of the quotation say by way of explanation?
As materiality value increases, so the extent of audit testing decreases.
So we select fewer transactions to cast our professional eyes over
And the fewer we look at, the greater the audit risk
So, as materiality figure increases so too does detection risk
Does that answer it?
respected sir,
first of all thank you so much for your time .
I have confusion in the statement itself…..
when materiality value increases, why the audit testing decreases .I mean if the amount is material we should test it extensively,.isn’t it .or Am I confused ?or the concept is like when the amount is so material that we cannot go on for testing as we already know that its material.
please help
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