audit

Although the topic of audit risk is relatively early in the syllabus, you really need to have studied most of the syllabus to have a reasonable understanding of the whole process of an audit … and … therefore, what might be an appropriate auditor’s response in the circumstances. When you’ve worked through our notes or your text read any recent examiner’s report for what the examiner wants. If you still have a question please ask more specifically what you are struggling with.

I suggest you try the Section B Q1 that is referenced here and then watch the tutor debrief video https://opentuition.com/acca/aa/acca-aa-revision-lectures

Please try this post https://opentuition.com/topic/auditors-response-vs-substantive-procedures

Are you identifying the risk for yourself? If yes, you should have SOME idea of a response. For example, if you can identify a risk that inventory may be misstated in the FS because goods may be moving/in transit at the reporting date, you should be able to think that what the auditor must then do is pay more attention to cut-off at the reporting date – e.g. by increasing testing on cut-off before and after the reporting date.

Movements of inventory are purchases (transactions that also affect the payables balance) and sales (transactions that also affect the receivables balance).

See pages 97 and 98 in the inventory chapter in our notes.

I am sorry but I am unable to think of an appropriate response to any student whose issue, without any further clarification, is “I am unable to think”.

You say that you have “watched the lectures, read the notes examiner report …” but that you did not see the link between inventory and cut-off suggests that you do not have a sufficient grasp of the subject matter to be attempting exam style questions.

I have supported students on this forum for five years now and never before had a student who I cannot assist, but it seems I cannot assist you.