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assess the key findings of the audit findings of completion.? I believe that the audit senior has gathered appropriate evidence for the audit manager to review it.
So how will I tackle a completion of audit question. is it similar to materiality. where first identify materiality. accounting treatment and audit evidence/procedures.
i.e in Jovi question – it mentions that they gathered info but info may be irrelevant or perhaps not enough.
need to know how to tackle this.
thanks
It’s an 18 mark question
There are 9 key audit findings.
The question asks you to:
– assess the implications of these key audit findings
– consider whether they indicate a risk of material misstatement, and
– where the findings relate to evidence, consider the adequacy of the evidence that has been obtained
And that’s all for 18 marks
So how deep do you want to get into this part question
You can assess the implications by establishing what the consequences will be on the financial statements and the affect, if any, on your audit report and opinion
You will need to consider the materiality of these indications in the context of the draft financial statements and determine whether the matters could lead to a material misstatement
And then you’ll need to establish whether the audit evidence obtained satisfies the requirement of being “sufficient” and “appropriate” and, where it isn’t, identify why it isn’t but there’s no need to recommend any further procedures that may lead you to sufficiency and appropriateness
And all of this is for two marks for each of the nine key audit indicators
3 minutes 36 seconds (reading, thinking, planning and writing time) for each one
Ok?
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