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Hello, thank you for all of the resources.
My question is how detailed does the definition for audit risk, inherent risk and control risk need to be when asked in the exam to define audit risks and its components? Does it need to be word for word text book definition to be awarded full marks?
It’s an applied skills exam – not a knowledge exam – you do not need to learn any definitions verbatim – will you be required to copy them out.
Thank you.
How would you recommend wording the definition of for example inherent risk?
Look at the diagram on page 54 of our notes:
IR – the risk of errors arising
CR – the risk that they (the errors) are not prevented/detected and corrected by internal controls
DR – the risk that the auditor fails to detect a material errorAnd would that be enough to secure full marks on a question like that? The model answer in the
kaplan exam kit is a lot more detailed.I don’t know which Q you are referring to and, if you look at any recent exam, you will see that you are not going to be asked for definitions. Things that you can “learn by rote” are more likely to be examined in Section A – but even there there will be few “knowledge” marks.
As I wrote it – no – I would probably only be awarded 3 x 1/2 marks for that because you have to write in full sentences – for 1 mark a point. You will see resources “sticky posted” (“starred”) at the top of this forum to help you with answering questions and marking.
thats brilliant. also read the article you mentioned aswell. thank you for the help.
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