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Ms,for PYQ June 2015
Q1(b) “Inventory”
1.Why the year-end inventory count held at oversea will already have taken place while the audit planning just started?Q1(c) “Audit procedure on the portfolio of short term investments?”
2. For the second last point: why need to understand how the performance of investments is monitored, is it related to assess the effectiveness of the internal control? and if not, it’s related to which assertion?
Thank you.
Q1(b) Because the Q was sat on 1 June 2015 and the financial year was “ended 31 May 2015”.
Q1(c) Because the business model is relevant to accounting treatment (IFRS 9).
Q1(b) are you refer to the real exam sitting date for this paper?
Q1(c)but the answer more related to the treasury management function(review documentation relating to the scope and procedures) not for the financial asset?
Thank you.
Q1(b) Yes – if a scenario refers to a reporting date as “ended” it is past – if “ending” it is in the future. When an approved content provider updates past exam Qs they should still maintain the original sense of timeframe.
Q1(c) I don’t have Q/A to hand – but the business model and treasury management function are inter-related. You may have encountered in your AFM studies that it is the senior financial manager who will determine a company’s financial management strategy – which is a determinant of the business model.
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