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Thank you, Kim I appreciate it but unfortunately, my supervisor is not a qualified member per IFAC and can only sign off on my time. My work will be signed off by a principal at work upon confirmation by my supervisor. I was only confused about whether meeting majority (4/5) elements would also count towards successful completion of PER.
In simple words, an emphasis of matter paragraph appears in a modified report but the opinion remains unmodified.
I hope this helps. Happy studying! 🙂
Say a customer has a material balance of $100,000 with your client and hasn’t made any payments so far. Reviewing the after date cash receipts provide evidence about whether the client has any intention to pay. If no payments are received before or after the year end, the receivables may have to be written down (irrecoverable debts) which affects the value of receivables
I hope this helps. Happy Studying! :).
Hey.
1. Yes.
2. Mostly in questions on Analytical procedures for inventory, accruals, cash and such
3. No. Test of detail relates to substantive procedures which is different from test of control.I hope this helps. Happy Studying! 🙂
Look, there can be assertions with respect to financial statements and account balances.
Financial statements: (Mnemonic: ACC COP)
1. Accuracy
2. Completeness
3. Cut-off
4. Classification
5. Occurrence
6. Presentation.Account balances: (Mnemonic: PC CARE)
1. Presentation
2. Completeness
3. Classification
4. Accuracy, Valuation, Allocation
5. Rights and Obligations
6. Existence.Read up on these and think. Inventory is an account balance so the related assertions would be Existence, Valuation, Completeness and such.
Sales and Purchases would include assertions like cut-off to ensure that it relates to current year, Occurrence to ensure the transaction actually occurred in addition to accuracy and completeness.
I hope this helps. Happy Studying!
Yes.
Basically, if the amount is equal to or more than 0.5% of revenue, 1% of total assets, and 5% of Profit before tax, it is material.
I hope this helps. Happy studying.
An audit report can be modified or unmodified. If modified, it can include a qualified *opinion*. A qualified opinion can be issued under 2 circumstances.
1. There is a misstatement that is material but not pervasive.
2. The auditor is unable to obtain sufficient appropriate evidence about an area or balance which is material but not pervasive.In both the cases, the ‘Basis for opinion’ section will be modified to ‘Basis for qualified opinion’ to explain the reason for modification.
I hope this helps.
