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“Consider whether the valuation undertaken provides sufficiently objective audit evidence. Discuss with
management whether Martin Dullman has any financial interest in Elounda Co which along with the family
relationship could have had an impact on his independence.” can you please tell me whether this relates to an assertion? if so, which one? if not, how is it a substantive procedure without relating to an assertion?“Agree the revalued amounts for these assets are included correctly in the non-current assets register” would this be tracing or vouching?
Since Martin is an expert carrying out the valuation it is relevant to the valuation assertion.
See page 102 of the notes:
“If the work of management’s expert is to be used as audit evidence (ISA 500), the auditor must
evaluate:
– The expert’s competence, capabilities and objectivity…”Please note also that this is a free service not a 24/7 service; I could not reply to this yesterday (Sunday) because you did not cite the source of the question (September 2016) and I was not at a computer to confirm the context of the quote until this morning.
oh no, i had mentioned this question because i thought it had gone unnoticed due to it’s title which was very similar to another question of mine, thank you for the assertion though, is it important that we have to link every substantive procedure to an assertion?
No worries – and a good reason for giving your posts more descriptive titles 🙂
To “describe” a substantive procedure is not just to state what the auditor should do – but why. Identifying the relevant financial statement assertion(s) is just one way of explaining why.
Hence the article “The Audit of Assertions” https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/assertions.html
However, using the work of others (internal audit/experts) has “special considerations” which will also be relevant to explaining audit procedures in a particular area.
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