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Can u help me to understand how to find answer for the further work that is needed to be carried out by an auditor in relation to an item in the financial statements?
what question should we ask ourselves to identify the further work required?
are these any substantive procedure which is to be carried out?
Consider this question Darren 6/15
a)requires to identify any further work needed along with other requirementsThe answer key mentions the below information
Further procedures should be performed, including: The contract terms should be scrutinised for any terms relating to the completion of stages of the contract which may trigger the recognition of contract revenue.
Surveys of work performed by 31 January 20X5 should be reviewed to estimate the stage of completion at the end of the reporting period.
Correspondence with the customer should be read to confirm that the contract is progressing in a satisfactory way.
Are these the further work carried out by the auditor?
There is a need for “further work” only in the situation where the existing work is considered to be insufficient
the question must have given you an indication of ow much audit work has already been undertaken and (presumably) your review of the audit file suggests that more is needed
There is no ‘standard’ answer
“Google ‘further audit work’ and learn the 10 points”
It doesn’t work like that
You’re on the cusp of qualifying as a Chartered Certified Accountant! The ACCA and the P7 examiner want you to demonstrate that you have the ability to identify problems and design solutions tat fully address those problems
It’s no good as an auditor presented with a tricky issue for you to respond “Let me get my text-book to see what it recommends in this set of circumstances”
There’s no possibility of a standard answer because the extent of further work required is totally dependent upon the work already carried out as given to you in the question
Sorry 🙁
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