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So that means like criticising whether stakeholder concerns are being addressed in the statement?
Is there a difference between the rights and the responsibilities of an auditor?
Does the auditor require client’s permission before sending a letter requesting direct confirmation of inventory balances held at y/e from any third party warehouse providers?
Could I suggest ”Use of audit software to cast the receivables ledger” as an audit procedure?
Test 1) is checking if the trend is consistent hence confirming completeness of the bank balances
I was trying to recommend a safeguard for an audit firm which is being offered a chance by the client to provide taxation and finance advisory services.
Is it sufficient to state that ”The audit partner should decline the appointment to carry out the different non-audit assignments.” & earn full marks for the safeguard.
Or I need to go a step further.Does an audit risk arise where the integrity of accounting staff is questionable?
How about ”Classification and Understandability”…Is it likely to come up in the exam?
Regarding point (ii) the signed GDNs are only sent to warehouse department. Yet they are supposed to be multipart. Hence accounting department will not update its records since they have not received a copy of the GDN.
Does the direction of testing matter regarding auditor’s responses?
Like in the June 2015 exam, where some surplus PPE was sold and therefore at risk of being overstated.
Is it appropriate to review the NCA register and inspect schedule of surplus assets to verify that they have been removed
OR to inspect a schedule of disposed surplus PPE and agree a sample of these items to the NCA register?Are assertions of presentation and disclosure likely to be examinable after the changes to ISA 315?
From the Dec 2013 question, Oregano(Internal Controls), I identified two deficiencies
which were not in the model answer?
i) Quantities are not checked back to the relevant sales orders. Therefore the wrong
description of goods could be despatched to the customers. Hence Oregano would
lose customer goodwill and subsequently lose its reputation.
ii) Signed GDNs are only given to warehouse team to file. No sign of sending copy to the
accounts dept. Therefore accounting records may be incomplete.Would I be correct if I put them down?
Hello
In the BPP Kit no. 37(MASON), why is it that the option below(auditor’s response) was not recognised as correct?
Contact the police force directly and request confirmation as to whether the contract is to be renewed.A company is requesting for extension of its overdraft facility.
Besides the cashflow problems and a going concern risk that may result if the overdraft is not approved, is there a risk that it may create an incentive for mgmt to manipulate profits and hence profits may be misstated?
Independent contractors were employed to construct a new hotel on land already owned by Plaza plc. Work commenced in January 20X7 and the new hotel began trading in November 20X7.
From the above scenario, isn’t there a risk that revenue due to the contractors may not be recorded in the correct accounting period?
If you are testing purchases for correct cutoff, in what direction would you test the transactions?
For instance, do you test from the invoices to purhases ledger OR purchases ledger back to invoice?When auditing expenses, are the following procedures appropriate?
1) Obtain a breakdown of expenses for the year and compare with budget. Where there are significant differences, discuss with management
2) Reperform posting of expenses to the general ledger and inspect client’s general ledger to ensure they have been correctly posted.
3) For a sample of transactions, review supporting documentation like invoices and agree balances to the general ledger to ensure they have been properly classified.
4) For a sample of pre-year end transactions, review item in the general ledger and match to supporting documentation to ensure they have been recorded in the correct period.In the exam, how do you tell that a material uncertainty is pervasive when assessing the impact on the audit report?
Is a parent-subsidiary relationship same as the parent-SBU relationship referred to in this course?
Or is it that the SBUs are just separate divisions within the parent?
