[vijnas]

Independence would fall under objectivity. Since being independent removes the threat of giving an unbiased opinion.

[vijnas]

The auditor would have to discuss it with management and let them know that the mistatements need to be corrected since the statements aren’t showing a true and fair value.

If they don’t correct it then the auditor would qualify his audit report explaining the compounded mistatement

[vijnas]

My answer is:

PO’s generated through a centralised purchasing dept.

– confirm that they have been authorised by the appropriate supervisor /manager who actually made the request, to ascertain that it wasn’t a made up order.
-verify that the PO has been authorised by the Purchasing manager, to ascertain that the order has been authorised for purchase.

-Inventories
Test that the Requisition has been approved by the inventory manager, to confirm that the levels were infact at reorder quantity and the inventory dept is requesting more supplies.

—
I hope it helps

[vijnas]

hope it helps

[vijnas]

My answer would be

Test of Controls – these test that the control procedures of the company are being followed and are running efficiently.
eg – ensuring purchase orders, customer sales, etc. are authorized/ approved, ensuring work is signed as being reviewed ( bank reconciliations)

Substantive Test – These test the financial statement for material misstatements at the assertion level.

eg – recomputing figures to ensure accuracy, inspecting assets to confirm that they actually exist and aren’t being made up on the financial statement.

[vijnas]

Hi,

If a question does not state the method of calculating Goodwill what do we do?

assume Full goodwill method OR proportionate method ?

[vijnas]

Hi,

In the same question 1, do we assuming that the bonds are being redeemed at a premium to calculate the ‘Kd’ ? .. If they mentioned it in the question i don’t think i see it 🙁

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