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So it is completely correct to say that pay back is a risk focused approach
likelihood of the deficiency leading to a future material misstatement
the interaction of deficiency with other deficiencies
the importance of controls to financial reporting
The volume of transactions that happen or will happen in the area affected by deficiency
The no. of exceptions that arose as a result of the deficiency
And umm the subjectivity and complexity of estimates in the financial statements.how is it that option 1 and 2, both being the complete opposite, so if 1 were false other shouldve been true right? Why is that not the case…………….
Sir, we all absolutely admire you for doing what you do, I’m sure every single day you gather tons of good wishes and are always remembered in good thoughts!
Thank you once again, You are a savior!Hey there, you are not alone, I’m taking F8 and F9 together and I feel like i’ll pass out. I’m never ever taking 2 exams in a session ever again.
And Thank you Mam, every bit of advice from your side is always so valuable!
ohh never mind sir, I got it, because currently theyre financing with long term whose finance cost we’re ignoring long term finance cost, and only when we hold more inevntory in ii and iii part, we;ll take account for overdraft finance as holding cost.
Thank youu
oh, Actually it was there on acca website months ago, and then yesterday I came across this MCQ again in bpp kit.
so if, an item is sold, first a till receipt is generated and then books are updated right? then would it be valid to test completeness by tracing a sample of receipts through to inclusion in sales day book?
and also my agreeing cashbook receipt to inclusion in revenue? will test completeness?
Thank you mam, and it’s disappointing how kaplan and bpp mention and actually explain ”modified report” cases.
my concern is why the order isn’t 2,3,1,4. and to confirm if the above order is correct. as that is what is mentioned in the text too..
Your audit assistant has carried out a direct confirmation (a receivables circularisation) on trade receivables at
Lodestar. She selected the 10 largest balances, representing 85% of the sales ledger at year end, including 2 items
that were individually material. Seven customers agreed the sales ledger balance, two replied noting discrepancies
which she has followed up and one has not replied.You are analysing the sample selection with regard to the direct confirmation.
Which of the following statements in relation to the sample selection is TRUE?
1. The sample is appropriate and, at 85% of the balance, gives good assurance about the overall
balance.
2.As 15% of the ledger balance has not been sampled, the sample is inappropriate.
3.The sample selection does not address the risk of understatement as it has focused on the ten largest balances.
4. The sample should have been stratified to provide a representative sample.Sir, if theres an exam mcq on for instance effect of interest rate on exchange rates,
If its a true and false statement, then for an effect to be true in accordance with the parity theory the mcq must mention “in accordance with parity theory’’
Cuz there are two cancelling effects so how do we know in which context we answer like appreciate the exchange rate cuz greater currency demand due to high interest rates or Depreciate the currency due to parity theory???I apologize for not being clear with my question,
but I think the above answers my query which was : that Audit committee is responsible for reviewing the internal controls and not for monitoring them since monitoring internal controls is the responsibility of management.Thank you mam
= Increased Finance cost = (.8*28000000*30/365)*9%
Reduced overdraft cost =( 5370000-.2*28000000*30/365) * 7%I’m getting the same answer with this, is this approach fine too?
