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Q1 : Is it correct evidence – A copy of the board mints where the reasons for the reduction in provision were discussed to verify their appropriateness ?
Q2 : kindly can you explain the difference between board mints and management notes because I see both term in standard answers of evidence question .
And appropriate use both of these terms in evidence question .
The term is “board minutes”.
Q1 This will show that the board has discussed and agreed the provision and that it correctly appears in the FS. The auditor must then assess whether, in the auditor’s opinion, the provision is appropriate. The auditor may want to discuss itmfurther with those charges with governance.
Q2 Board minutes are the record of top level discussions eg, whether to close a factory; management notes are for smaller matters, eg which machine to buy ( though very large purchases might be elevatedmtomboard level.) Both give evidence of the decision-making process and allow the auditor to understand and potentially challenge the conclusions.
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