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Multiple Audit Risk about one FS Item.
Please when you identify two or more audit risk about a particular Financial Statements (FS) item, such as inventory, do you have to write all as one or you can split them and give the Auditor’s response for each?That is, when you’re required to state some number of Audit risk (say 7 audit risk), is it appropriate to state 2 separate risks out of the 7 about one item, maybe inventory, or you have to put them together as 1.
If you look at a published marking scheme where this is the case (i.e. more than one risk) you will see that they are assessed separately. E.g. from M/J18 exam:
Inventory valuation 2
Inventory count after year-end date 2Please please please READ the article linked to the starred post at the top of this forum “How to score marks in AA – essential guidance” – attempting the two Qs covered by this article and then reading the article is the single most valuable thing you can do with your time before Monday’s exam – you will see this answers your Q too and it is full of useful tips how to succeed in this exam.
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