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ACCA P1 lectures P1 notes
February 16, 2017 at 3:28 pm
Audit committee and the external auditors ( ea ).
One of the responsibility is to review the scope of the audit with ea, and satisfy themselves that the scope is sufficient,
Sir am i right when i am thinking that there’s nothing to be worried about here because the audit committee is composed of NEDs only which are ‘independent’ and hence can satisfy themselves with the scope of the external auditors which are themselves independent?
February 16, 2017 at 4:00 pm
This post would have fitted nicely into an Ask ACCA Tutor forum thread!
“… when i am thinking that there’s nothing to be worried about here …”
I would hope that there’s nothing to worry about anyway!
I’m not sure what your point is but the NEDs are not just some folk picked off the street with no understanding of business, commerce nor particularly auditing!
The NEDS will consider whether the proposed scope that the auditor has planned around and the materiality levels that have been set are appropriate for the risks involved within the entity and within the entity’s impact on the wider world
I think the use of the word “worry” is probably misplaced and I would certainly hesitate to use that expression in the exam – you make the whole exercise sound like a rubber-stamping function to provide the NEDs with something to do
Far from it!
November 16, 2016 at 1:03 pm
Hi please what is the mnemonics PINK LOAVR for? I didn’t watch the video of the topic where it is formed. Thanks
February 2, 2016 at 6:39 pm
Clarissa aka the whistle Blower. Ha! Ha! Ha!.
Thank you Mr Mike Little. Love your name:)
August 5, 2016 at 8:39 pm
Yes, I got it from my father
May 29, 2015 at 3:39 pm
Further to my most recent post (about following the news, reading the papers, listening to the radio) are you following the Sepp Blatter / FIFA saga? Is there a body in this world any more corrupt than FIFA (allegedly)
Without wishing to offend in any way our students from that area of the world, what possessed FIFA to agree to a world cup in July / August in the soaring temperatures of Qatar?
I can only surmise that money changed hands but, of course, I could be wrong
August 5, 2016 at 6:19 pm
It seems you were right sir. More than 1 year later and the truth is beginning to come out.
August 5, 2016 at 8:38 pm
And now the olympic organisers in Brazil are admitting that they failed to sort out the pollution issues in the bay where the sailing events are taking place – swallowing three teaspoons of that water will “guarantee” that you will be ill … possibly fatally
Oh, life is a rich pageant
January 21, 2017 at 10:21 am
And there are human rights issues also in Qatar ( migrants labour deaths toll are surfacing)
May 29, 2015 at 1:42 pm
I think to add onto the subject in regards to whether the audit committee should give their opinion on the scope of the work, alternatively what can be done and is good practice is that the audit committee should do a scope of the work which will be implemented by the internal audit department and have a report on work done. Then when the external auditors come in, they can have a copy of this report and in addition to their already defined procedures, they can check areas checked by the internal auditors and also analyse whether if for example there was a finding in a certain area to which a control was put into effect, the external auditors can test that particular area analyse whether the control is effectively mitigate the risk and report to the audit committee that the initial risk identified has in fact been mitigated and this is the work that was done and so on. In this way it does not seem that the audit committee is in a way bossing the external auditors on scope of work, but in fact lightening their work load to pin point where problem areas are and the like.
This is from personal experience when carrying out audits, I am in external audit and often and not we usually do use this approach in addition to our own designed procedures on audit on an entity.
March 29, 2015 at 1:20 pm
Hi Mike, this is a very dry subject but you are making it very interesting. Really like your humor and lecture! Thank you so much!!
March 30, 2015 at 7:10 am
It’s a funny thing, that! You may initially think that it’s a dry subject and certainly reading text books that impression is consolidated! But then when you start to think about your everyday life activities and apply the messages from P1 to your experiences, it brings the whole subject to life.
And I don’t refer simply to your life’s experiences only. Open your mind and consider the activities of all the people you hear about on the news: politicians, sports personalities, business leaders, religious leaders – the list is endless.
The rabbi in France that lied about his qualifications, the directors of Tesco that manipulated and falsified their accounts, the footballer that bit (not for the first time!) the neck of an opponent, the politician that was secretly filmed trying to arrange a situation so that he could later be involved and made to look “good” because he would be seen to have defused the situation that he had secretly arranged.
Never mind your own life’s experiences! Just watch the news, listen to the radio, read the newspapers! Every day (and I mean EVERY day) there are numerous examples of people in our society that are committing acts that lie beyond the boundaries of acceptability!
It’s a brilliant subject!
Dry? Yes, if you want. But not in my opinion!
August 10, 2014 at 1:06 pm
Love your lectures thoroughly! Thank you Mike Little 🙂
August 10, 2014 at 1:38 pm
Thanks – so, you’re onto P level now!
Keep it upi
August 10, 2014 at 4:43 pm
Thank you for your best wishes…! So you recognised me 🙂 🙂 🙂
Absolutely love your lectures! I wish you do your lectures here in the UK!
August 10, 2014 at 4:46 pm
Thanks again for your kind words. How can I not recognise a fellow alcoholic – even if he is just an accountaholic?
No chance that I shall ever teach again in the UK – serious questions about whether I shall ever return there (births, marriages and deaths excepted)
April 6, 2014 at 2:47 am
@ Mike Little;
You are truly a blessing! I got instantly excited about P1 when I played the first lecture and heard your voice. You are the reason why I excelled in F4 and F7!
I am very humble!!
August 10, 2014 at 1:36 pm
Hope you passed P1 in June!
January 27, 2014 at 3:47 am
Excellent , Thank you. These mnemonics have helped greatly.
September 12, 2013 at 11:04 pm
July 22, 2013 at 4:29 am
This guy is so good at what he does.
March 28, 2013 at 5:30 am
who appoints external suditors….? shareholders?
May 19, 2013 at 10:04 am
Yes, the shareholders (owners) after the recommendation of the audit committee (formed by NEDs)
December 9, 2012 at 1:23 pm
December 9, 2012 at 1:34 pm
@crye, Oh… Chief Financial Officer.
November 29, 2012 at 10:41 am
You are a fabulous lecturer..thanks soooooo much!
September 12, 2012 at 4:36 pm
This is just excellent, i just love how he keeps referring and repeating Mnemonics in every chapter . U can never forget them. Good lecturing ,keep up the good work Mike.
June 15, 2012 at 7:53 pm
Mnemonics are Awesome!! Good Lectures
October 12, 2011 at 10:31 am
What is Clarissa?
December 9, 2012 at 1:25 pm
@shehzad78601, It’s the mnemonic for the list above it (fxns of the Audit Committee)
October 11, 2011 at 8:22 pm
June 11, 2011 at 8:47 pm
Excellent, I particularly like the testing of Mnemonics at the end… 🙂
June 5, 2011 at 8:09 am
you are very good.. thanks
March 22, 2011 at 11:24 am
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