[Jonathan]

Venezuela. The question was based on that.

Depending on what industry you operate, you choose which exchange rate to use.

[Jonathan]

@guptashubhangi said:
wy are we taking depreciation to calculate avg profit?

Because they gave you cash flows, and the depn is added back to get to those, for profits you need to remove it again.

[Jonathan]

I think the scenario said that she had been an executive employee of the company 5 years ago and that she had just been appointed as a NED In the present.

[Jonathan]

I chose that non of them were independent. I think the guidelines say that it has be at least 7 years not 5. I think, I might be wrong.

[Jonathan]

I think it was option C

[Jonathan]

Think the question was what the auditor should do to determine whether the existing documentation can be used for this years audit.

I wrote that they should dig out last years audit file to verify that the issues they encountered with internal controls were actually rectified, if no evidence of this is found then the existing documents may not apply to this years audit anymore.

I wrote a couple of things more but I wasn’t confident I was picking up all marks. I hadn’t seen a question like that before.

[Jonathan]

I also went for $2.05 on that one, which was A.

[Author]

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