[sanjay]

Hi,

1) Is it important to include the relevant assertion in EVERY audit procedure?

2) If we don’t include the assertion will we not be awarded marks.

[sanjay]

Sir,

weren’t those articles recently examined?

what are the chances of it being examined again?

i’m quite worried about the current issues section as they’ve not updated that section.

[sanjay]

Oh I see.

Thank you for making it clear.

[sanjay]

hey thanks for replying.

my question is, if the $30m gain has already been recorded in the individual account then why do I have to remove/reverse it on consolidation?

why can’t I just leave it in retained earnings?

is there a rule that I am missing?

let’s start from the begining

dr investment $280
cr cash $280

then the $30m gain happened AND WAS RECORDED in the financial statements.

dr investment $30
cr P/L $30

now, on consolidation,

dr cost of control $280
dr P/L $30
cr investment $310

Is this the explanation you are talking about? because this is the only explanation I can come up with.

thank you =)

[sanjay]

Ok, this clears up a lot of things.

Thanks Sir =)

[sanjay]

I see.

Thank you Sir =)

[sanjay]

Yes even I feel my answers are boring.

What im really worried about is whether my answers are too short n brief.

Or should i elaborate a little bit more? or would that be a waste of precious time?

Do you see my problem Sir?

I’m not exactly sure what is required of me from the examiner.

The suggested answers are so long and it is giving me the impression that I have to write more.

Yes you did say 1 sentence, 1 mark. But why is the suggested answers giving students the wrong impression?

p.s: i mean no disrespect whatsoever to the examiner that wrote the suggested answers.

[sanjay]

Thank you Sir

[sanjay]

I see.

Then what would be a better way of answering an ‘audit risk’ question?

1. Identify the inherent/control/detection risk from the scenario

2. Explain how those risks would affect the auditor’s opinion if not corrected

Is this better ?

[sanjay]

I would say I’m pretty weak at coming up with AUDIT PROCEDURES.

which I am mastering now.

But other than that, I’m not sure where I’m going wrong.

[sanjay]

Dear Sir,

That’s exactly what i’m trying to figure out.

How in the world did I fail this paper if I applied the correct EXAM TECHNIQUE???

[sanjay]

thank you for your time and help sir =)

[sanjay]

My sincerest apologies Sir.

i tried it and wrote 3.5 lines

i have read most of your responses on other posts and you have suggested this method a few times.

i am assuming the point of this exercise is to practice discipline in writing and i have to move onto the next point after a maximum of 3 to 4 lines

but what if those points that i wrote makes little to no sense?

i’m wondering whether it would be logical to come back to the same question after finishing all the other parts of the exam paper and write more than the 4 points allocated to the ques.

so i’m asking whether it would be a waste of time?..will the examiner not look at my extra points after my initial 4 points?

i apologize if my question seems all over the place

its just that i’m panicking a little

[Author]

Posts