- This topic has 10 replies, 3 voices, and was last updated 8 years ago by
.
- Posts
Q1) What do u mean by perform a proof in total?
Q2) Do we get marks for stating the assertions?
Proof in total.
Let’s say you were auditing ticket revenue for a cinema. You should be able to get evidence about the number of tickets sold. You will also know seat prices. Therefore:
Total revenue = Tickets sold x seat prices.
It won’t be spot on because some seats might be at a different price to others, but you would expect it to be close to the revenue reported.
Assertions.
Obviously, it depends on the question (usually no need for detail on assertions when talking about audit opinions). Where it’s really important is when you are describing an audit procedure as you should say which assertion you are collecting evidence for. So in the example above on cinema revenue, the proof in total will give evidence about teh accuracy and the completeness of the revenue figure.
A review engagement is where the FS are reviewed but the work falls short of an audit. It is sometimes asked for by companies that are exempt for audits to give members and directors some assurance that the FS etc are OK. The opinion at the end of the engagement will be a limited (negative) opinion ie that nothing was found leading to a conclusion that the FS have not been prepared properly. Review engagements are cheaper than statutory audits where a positive opinion is required.
For example- re-perform the arithmetic of bank reconciliation for each bank account held, its one of the procedures of bank……
My question is do u get one mark for this, 6 m equals six points?can we write in point forms????
Usually the question instruction is identify and describe, or idendify and explain. The commonest marking allocation published is 1/2 mark for identification and 1 for description eg why you are doing it. If you just day ‘Do a bank reconciliation’ withoug explaining why, then that’s probably only 1/2.
- You must be logged in to reply to this topic.