[toushiga]

Very clear explanation, understood now, thank you so much, Miss Kim!

[toushiga]

How do we differentiate the situation of these two if the involvement will be a director,whether it will be under” serving as director or officer of an audit client” or “employment with audit client”?

[toushiga]

So what does the examiner answer try to express for? Possible for one benchmark for whole FS?

[toushiga]

Thank you, Miss Kim, I’m clear on that now 🙂

[toushiga]

So in conclusion that an item need to be meet the definition of asset and meet the two qualitative recognition criteria before recognised in the FS?is it correct?

Thank you.

[toushiga]

Is it even an asset meets the recognition criteria to be recognised in the financial statement if its not present faithfully and relevant to the user of the FS,it will still not be recognised? Is it correct?Thank you.

[toushiga]

Thank you as always!

[toushiga]

Thank you Miss Kim !

[toushiga]

Even the probability of the payment is no longer probable or even it’s remote?

[toushiga]

Very clear explanation ,understand now ,Thank you so much !

[toushiga]

Thank you ,I understand now

[toushiga]

4. But the answers was specific refers to the government regulations and the scenario have already stated no going concern implication?

“There is a risk that not all of the implication of the government regulations have been addressed by Foxglove & Co during their audit” “For example,They should have considered the overall going concern status of the company and the impact on the valuation…”

[toushiga]

I see, how about the “objective-based work effort”? Thank you.

[toushiga]

And what is spectrum of inherent risk and objective-based work effort under ISA 540?

[toushiga]

Under the EXAMINABLE DOCUMENTS SEPTEMBER 2020 to JUNE 2021

in the Exposure Drafts (EDs) section,the ED 540 have not included,but it is listed in the technical article website ,will the ED 540 still examinable for Dec sitting?

[toushiga]

But the examiner answer in Sep 2018 Q2(a) ” Sale of Newall” stated that :

“Assets held for sale are valued at the lower of carrying amount and fair value less costs to sell.
The carrying amount consists of the net assets and goodwill relating to Newall less the non-controlling interest’s share.”

[toushiga]

Then how do we accounted for the amount received for customer for the service provided? Dr cash and CR other income? and the accounted for this transaction is when the cash received from customer rather than in the point when the entity provide/ satisfy their performance obligation like IFRS 15?

[toushiga]

If the self review threat cannot be reduce to an acceptable level then the valuation service should not be provided but the auditor can still able to provide the audit as long as the valuation / measured by the management or other expert?

[toushiga]

Great answer , how about another way round which the entity donates NCA to another non-related entity? Will the Debit entry is other expense or reserve?

[toushiga]

What is the credit entry will goes to? other income?

[toushiga]

3. But its stated to integrating not separating, does it mean that presentation and disclosure considers to be one assertion?

[toushiga]

The entity / Co receive the donated asset(NCA) from another non -related and non governmental entity

[toushiga]

https://opentuition.com/topic/auditor-response-3/

[toushiga]

Refers to this answer
“Seek permission to contact the insurance provider to enquire as to the status of the claim, and attempt to receive written confirmation of the likelihood of any payment being made”

[toushiga]

4. I refers to an audit procedure that the auditor directly confirm with the bank for the loan amount is consider inappropriate audit procedure but asking for the claim from insurance company is appropriate procedure?

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