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Hello mam, I hope you’re doing good and are safe!
In the examiner report, it is said that Obtaining bank confirmation letter is not awarded any credits as a substantive procedure.
My doubt it, while performing the procedure of agreeing Balance as per Bank statement to original year end bank statement and bank confirmation letter, why is it incorrect to suggest to obtain bank confirmation letter?
It’s not incorrect in so far as yes this is a procedure that would be carried out. BUT “the year end was ….” means we are already after the year end. So the bank confirmation letter would have been requested before the year end and already received.
Obtaining anything is not – per se – a substantive procedure – it’s the doing something with it that is the procedure that earns credit.
You have chosen a good question here to highlight just how important it is when there are relatively few marks (only 4 in this case) that it is far better to think and focus on exactly how to address the specific scenario rather than go into “auto pilot” and expect credit for rote-learnt procedures.
Another good Q if you haven’t already worked on it is the the one referenced in the “Read the mind …” article starred at the top of this forum
Thank you mam for making it clear!!
You’re such a life saver as I suppose that Suggesting to obtain Bank’s confirmation letter wouldnt earn any marks for Cash and Bank substantive procedures either, right? Even though it’s there in all the answers? The point should be merged with other answer points to get a FULL mark
Spot on – so:
Obtain …. and agree ….
Obtain … and cast … and agree total …
Obtain … and confirm …
Obtain … and compare …
Obtain a written representation from management confirming …..
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