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Very timed limited indeed, Q 5 with balances all seemed material! 350k material to income statement but not in balance sheet, loan to key Mgt not material in figures bt material due to none compliance with accounting standards. Provision I think they were material in balance sheet and income statement but unsure as well with pervasive in the financial statements. The net of all this is material, I think.
think i might got it all wrong! This paper was difficult for me.Makers are harsh and hard if they can give 49% while u need a minimum of 50% to pass. Wouldn’t they award you with 1mark maybe from professional marks and get pass. I find it so unreasonable that u can award student with 49% or 48%.
Hi,
I have d same problem as u but I’m thinking that the application of IFRS 15 is the requirement in this regard since this the revenue from contract hence d weighing price per unit is due to variable such as discount (from 1000 to 950) if additional orders of 5K is taken then the price of the contract/unit is revised. Looking closely to the question, the variable is more likely occur.
I can also assume that, you know the theories and factual content. your problem might be addressing the question, its information and its requirements properly.
For instance if u are required to design substantive procedures, u need to understand what assertion(s) is being addressed and dat assertion fulfils which objective.
Also think (if u were to test control) of what might go wrong (weaknesses) in dat particular component u auditing n what shud hv been done correctly (recommendations).
It is also vital to know your accounting standards. E.g auditing PPE requires u to know IAS 16, 36, 12, as well as relation between IAS 40 n 16 etc.
This is a mind set u need to have in order to excel in auditing. Practise more question with reasoning.