- This topic has 6 replies, 5 voices, and was last updated 10 years ago by
.
- Posts
1.Which of the following would be considered the weakest audit procedure to confirm
the ownership and valuation of a non-current asset?
A Inspection of a purchase invoice
B Physical inspection of the asset
C Recalculation of the depreciation charge
D Independent valuer confirmation—
2. The following wording is an example of which type of audit opinion?
“We were unable to attend the inventory count at the year-end as we were not
appointed until after the year end. Owing to the nature of the company’s business we
were unable to satisfy ourselves as to the value of inventory at the year-end by any
other audit procedures.”
Assume that all other audit procedures were carried out in a satisfactory manner.
A Qualified opinion due to inability to gather sufficient appropriate evidence
B Disclaimer of opinion
C Qualified opinion due to material misstatement
D Adverse opinion (2 marks)
—3. Tests to confirm the valuation of inventory would NOT include:
A Recalculating the totals on the final inventory sheets
B Tracing a sample of items on the final inventory sheets to the original count
documents
C Ascertaining the accounting policy for inventory and confirming it is appropriate
in the circumstances
D Confirming the labour cost in work-in-progress from payroll records
—4. The purchases system of ABC plc includes two processes:
1 Checking of the supplier statements to the payables ledger on a monthly basis
2 Signing cheques and posting them at the following month end
Which of 1 and 2 are strengths and weaknesses?
A 1. Strength, 2. Strength
B 1. Strength, 2. Weakness
C 1. Weakness, 2. Strength
D 1. Weakness, 2. WeaknessThese are poor questions
1 B gives evidence about existence and could give some evidence about valuation (if the asset were in poor condition). Inspection does not indicate ownership.
C Depreciation charge recalculation gives evidence about valuation but not ownership.
D valuers value after being supplied with a list of things to value. Does not prove ownership
2 Could be A or B depending on the materiality of the inventory figure.
3 Probably B as that confirms quantities, not value (but value does depend on quantity.
4 B. The delay in posting payments could result in double payments.
Hello
I will take f8 for December 2014 but recently I heard from my friends that exam formats are going to be changed.
Question: what source of material or book can I use to adopt myself with new format?
Will ACCA post on the acca website few standard exam questions according to the new format?ACCA has published a sample exam on its site. The syllabus has not really changed – only how it is examined.
- You must be logged in to reply to this topic.