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Kim Smith.
Kim Smith.-
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foeldh123
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when the question have not adjusted the shares at fair value for the financial instrument (June 2015, question 1, part (c) (i) )and when we write audit evidence, will i get the same marks whether i write number 1 or 2 ?
number 1: result of discussion with the management that the financial instrument will be adjusted to recognize the shares at fair value
number 2: result of discussion with the management that adjustment has been made in the financial instrument to recognize the shares at fair value
i’m afraid whether there is a strict rule that audit evidence is only carried out at the finalization stage therefore marks are only awarded for writing number 2 (so no marks on number 1)
Kim Smith
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1 is better because the Q says that they are currently included in the financial statements at cost. Generally I don’t think the marker will be so strict as either point conveys discussion with management as a source of audit evidence and that the shares should be recognised at fair value.
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