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Hello Mike,
I notice that the audit procedures or evidences in BPP are generally short- for eg, “Agreement of $75 million to bank statement”.
We are supposed to explain in detail what and why this procedure should be performed, right? I kind of remember BPP giving extremely brief procedures in F8 as well which was not sufficient to score 1 mark at all so would like to confirm on this.
Thanks in advance.
Where we’re asked for “What procedures would you carry out?” your answer should be a list of procedures and each procedure should start with a verb:
“Agree the appropriate documentation supporting the payment of $75 million to the corresponding entry of that amount within the bank statement”
If you’re asked “What evidence should you expect to find?” your answer should be: “A working paper note to confirm that the payment of $75 million has been verified from the the supporting documentation to the corresponding entry in the bank statement”
The two questions (“procedures to carry out” and ” evidence that you expect to find”) are distinct in that the first is looking forwards to what further audit steps should be taken whereas the second is asking what audit steps have already been taken and that should already be documented
If you confuse the two and answer an evidence question with steps beginning with verbs … you’ve just blown your chances of scoring a pass mark for that question
From your post, I’m not sure whether this is a BPP extract from an answer asking for procedures or asking for evidence – are you really sure that you have quoted this correctly?
I am sorry for confusing you. That was an audit evidence indeed, from question 19 Francis co of BPP revision kit. Thank you for pointing it out.
Judging from the examples you have given the audit evidence from BPP is way too brief to score any marks, right? Or should we be aiming to write as many brief audit evidence (with no explanation) as we can? The latter is usually what BPP does but I also think BPP is trying to give a “comprehensive” answer so students can understand better. Which is the approach I should adopt for P7? Thanks again 🙂
The style of your response is determined by the precise wording of the question!
If a question asks “What evidence would you expect to find on the audit file?” then the answer is looking for short, sharp one-liners
If the question is worded “What evidence would you expect to find on the audit file and why?’ you would need a fuller explanation
But, to be honest, that would be a strange question wording. Far more likely would be the first example “What evidence would you expect to find on the audit file?” and, in that case, BPP’s answer would be the appropriate style – maybe with a short explanation in the style that I have used in my original post, but nothing too excessive.
Remember, you have only 1 minutes and 19 seconds to write the sentence that is going to score you that mark!
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