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Thank you so much! I have BPP Study text which is relevant for exams tile June 2017, can I use that to gain information for December 2020 exams for “Group Auditing” related topic only. I am currently very stressed about it since I do not have a tutor providing me guidance in this part. 🙁
What should I study to gain knowledge of Group Audit?
5. Group audits
a) Recognise the specific matters to be considered before accepting appointment as group auditor to a group in a given situation.[3] I found the points in open tuition but where can I find the explanations?
b) Identify and describe the matters to be considered and the procedures to be performed at the planning stage, when a group auditor considers the use of the work of component auditors.[3]Is the article you provided still relevant for 2020?
The second on is from published answers, mostly they do not write in full. Just state “Agree amount paid to cash book and bank statement”. Is this fine?
One more question relation to 2nd point, having significant influence does not mean you have the power to appoint directors right?
Really sorry for posting in the wrong place again and thank you for the great explanation!
Thank you, I got the question wrong, it is clear now. First query was if it is appropriate to consider it through just percentage of share ownership as the procedure is stating to confirm it is between 20% o 50%.
Thank you so much! It is clear now and I will use “Ask the tutor forum” moving forward!
Also when explaining the results of analytical review, will 2 marks be awarded per explanation (Inventory days – 2, Receivables collection period – 2)?
I had a question in relation to the division of marks for this question:
6 marks is calculation for ratio (1/2 marks for trend)
5 marks for additional information
So 13 Marks for Audit Risks and explanation of Preliminary Analytical Review. is this accurate?Also, the answer states a lot of ratios which I know I wont have to do them all. But if I want to select the ratios to perform, how many should I stick with for example in liquidity (as it involves current ration, inventory holding days, receivables collection period and payables payment period)
What are the 6 ratios I can stick to in order to not spend too much time here since I cannot finish the answer in time?
Thank you for explaining it so well!
For the second question for Bill Co, will marked be awarded if instead of gift I mentioned it is not on an arm’s length transaction and creates a self interest threat to objectivity?
Thank you!
Is the 5% interest in the question the effective interest rate?
The question’s answer stated ‘ finance costs could be understated if interest payable has not been accrued. The loan carries 5% interest per annum, and six months should be accrued by the 31 July year end, amounting to $2•5 million. Financial liabilities and finance costs will be understated if this has not been accrued.’
From my understanding this 5% is the cash we pay every year and this decreases the liability, hence if this is not accounted for liability will be overstated.
I am very confused about the 5% interest exam answer gave.
