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Hello Mrs. Kim
I have a general question regarding the AA exam, it may be a sily question.
When I have to describe a substantive procedures to obtain audit evidence, I find it easy to make answers with analytical procedures (compare to prior year/budget, compare to prior year/month, compare %, etc.)
Do you think its okay to answer questions using 3~4 analytical procedures as long as its valid answers? Or should I try to use various other procedures as well?
For example:
(1) Compare the overall level of the revenue against prior year/budget.
(2) Obtain a breakdown of sales analysed by month and compare this to the prior year/month.Above statements are very similar but details are different. Would they still make 2 marks?
Thank you.
There may be only 1, max 2 marks available for substantive analytical procedures. Since SAPs alone would not be a sufficient auditor response to a high risk area you are going to have to include some tests of details.
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