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And by cash flow I mean cash outflow and by benefit I mean tax relief.
Thank you and sorry for the mistake.
Sir,
In my kaplan study text, under substantive procedures for non current assets, the following procedures are given:
1. Obtain a list of additions and inspect the description to confirm that they relate to capital expenditure items rather than repairs and maintenance: verifies existence
2. Inspect a breakdown of repairs and maintenance expenditure for the year to identify items of a capital nature: verifies completeness
It would be of great help if you just help me understand how the above substantive procedures relate to the respective assertions given.
Sir,
When we write substantive procedures relevant to a particular scenario, is it necessary to mention the assertion which it helps to test.? (Like selecting a sample of items from inventory records and trace them to phsycial inventories to confirm the EXISTENCE of inventory assets).
Thank you in advance.
Dear sir,
In the modified opinion section under adverse/disclaimer opinions, the use of word ‘pervasive’ is evident. In understanding the word pervasive, I’ve read a statement saying “the effect of a matter confined could represent a SUBSTANTIAL proportion of the financial statements. Is there any specific criteria or percentage to judge whether a particular element is a substantial portion of the financial statements.
Your reply would be of great help.
Thanking you in advance.