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compare to Dec’10 sitting, it was damn Easy in this round, but it can be a disaster too. As standard demanding might set higher.
i also don’t know what is the Q’s precondition been defined. But i wrote as to “pre-check” before accepting any engagement, eg. any conflict of interest, staff ability, expertise required, experience in client’s industry or gained in the past of similar industry..
Well, perhaps you misunderstanding the underlying concept of QUALIFIED AUDIT OPINION.
I suggest you read the OT F8 notes, page 21. Once you totally understood and has a CLEAR SHARP picture in your mind, then re-read the technical article. Then you will understand why adverse opinion will NOT apply in the case study of Q5.
Management unwilling to provide a representation letter, means auditor unable to obtain a sufficient of Audit Evidence. And since it was considered material, so auditor will qualified the audit opinion, “EXCEPT FOR” will included. Well, some said Disclaimer Opinion. But it was wrong due to only ONE item mentioned and NOT many, so it cant be a pervasive.
@tzxsean, yes those part of it.. 🙂 peace…
@digitalgal said:
paper was tirin n totally unexpected..no ethical issues, no going concern, no coorprate governace..lets hope for the best..What i thought was, the ratio part, you should explain the Going concern in the Audit Risk. Yes, AR = IR x CR x DR. Since we do not have much information about the inherent and Control, so we CANNOT bluff and create “ANOTHER” case study for examiner.
Therefore, we need to use the calculated of Ratio to explain MORE on DR. which Going Concern might be included to answer that Question.Thats my 3 cents
For the question 1, i think there no absolute answers. As long as you can identify the deficiencies in the system, explain and justify it then recommend a mitigation which in reasonable, sounds logic and make-sense in real, then you will be award of marks.
Actually, she is too kind just asked you to list out the 4 of deficiencies.
i think the english of word that examiner used too bombastic. non-profession word to use. too many hidden meaning need to guess.
Eg. Strengths for the buying department, they enforce the purchasing requisite form, and research for the lowest of price = so called of VFM.
To improve it, I mentioned that the lowest price does not always mean a good in quality especially the nature and extent of the biz is running a hospital so the purchases must further detail study and listed out the authorize supplier then only purchase from them.
Guys how do you tackle the part of Audit risk?
My answer also included a Going Concern issues, compare the debt collection period and re-payable period for the both of receivable and payable, hence the cash is Nil and overdraft facilities granted, implied the cash flow difficulties.i answered Internet audit to reduce fraud, error, increase the control effectiveness and operation more and more effective, as a result VFM… hahha…
yes, it is material but NOT a pervasive. You should read the Opentution notes, page 21
are you talking end balance at SOFP/SOCI or transaction/system(purchases-system)?
those treatment will be different…Thanks, finally i understand…
Modified report != modified/qualified opinion, they are different things.
So in short EoM is Modified report but with unqualified opinion.@gromit
can you help to look this question.. Iam self-studying F8 so encounter the EoM issues…
Emphasis of Matter (EoM)