Audit procedures

This is AAA not AA, so basically don’t try to learn rules.

Essentially all procedures can be described with the five procedures “AEIOU” – see page 73 of the notes if you don’t remember what they stand for. “Obtain” is not one of these procedures – so something else would always have to be added to it. “Inquire” is a procedure that doesn’t follow from obtain.

Also, because this is AAA and not AA, you aren’t aiming to match procedures with assertions.

Just LOOK for example at the substantive procedures for Q1(c) of M/J21:

– Discuss the expert’s methodology and assumptions with management to confirm their rationale and compliance with the measurement requirements of IAS 41 Agriculture. – does NOT mention an assertion that you would identify for AA

– Obtain confirmation of the expert’s qualifications and experience in assessing storm damage to timber plantation assets and quantifying financial losses. – again, no assertion

– If possible, visit the site of the storm damage to form a view on the scale of the destruction and to evaluate whether any assets other than the trees have been destroyed or damaged. – again no assertion

Something as basic as cast a schedule (of anything) I think would be 1/2 a mark at this level.

They are specific rather than long … average # of words in the 3 examples I copied is 25 words.

Only 5 words longer than average 20 words for each point of substantive procedures published in AA answers.

In AAA, the design of audit procedures in Q1 is now typically only 5-8 marks.

For a 5-mark requirement 3 good points is 3 marks is a pass (!)

Short answer no they are not interchangeable.

They have different meanings depending on context. E.g. “significant deficiency” and “material misstatement”.

To say that something is of significance (or not) to the financial statements the term is material/immaterial. But not when talking about something unrelated to the financial statements.

Please DO download the notes and use the search functionality – “significant RoMM” is a technical term – page 55. Clearly you wouldn’t say “material RoMM” – since “material” is a given. As I said, material and significant have different meanings. A RoMM is not automatically significant – although revenue recognition is (because ISA 240 says so!)

Remember that ISA 315 is about identification and ASSESSMENT – not all identified RoMM will require a specific response – ISA 330 is about responding to ASSESSED risks of misstatement. Significant RoMM will always require a response.

Yay!