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how necessary is the knowledge of accounting standards is,in p7?i have listened 6 starting lectures,great knowledge,, but there is no discussion of P2 revision,,i wonder whether these lectures will be enough to enable me start revision kit myself???
Rooman, it is essential that you revise the IFRS / IAS. There is (probably) a lot of emphasis on accounting standards. Read the examiner’s report from December 2013!
Would u please name the accounting standards ,i will listen to only those lectures from either opentuition F7 lectures or P2 lectures,,So i will be really thankfull to u if u just mention the names of “necessary” IAS’s as “all” will be difficult to revisit??thanks alot
Rooman, at this level you are expected to “know” them all. there’s no way, in the middle of February (let alone in the middle of May) that I am going to start predicting which IAS / IFRS you should be aware of. Get hold of / print from this site a copy of the F7 notes and the P2 notes and just read (literally that, just read) three or four times through the abbreviated, bullet format chapters on the IASs / IFRSs.
In addition, google http://www.iasplus and start to skim through their excessively long articles on IAS / IFRS
I’m sorry, but there is no easy way to achieving this. As Gromit says “the only time ‘success’ comes before ‘work’ is in the dictionary”
And also remember in order for you to audit work of an accountant you must think like one! Hence the need to know the accounting standards that affect the accounts you are auditing
One more question sir
which years financial statements of DEVRO u are referring to in P7 lectures?Probably 2011 – do you hear me refer to the lack of women on the board? If so, it’s 2011. Devore appointed a former Deloitte woman partner as a non-executive in 2012 and I believe I’m correct that they now have two women on the board. Getting towards that magic 40% target that the European Community has set.
I’m waiting for 2013 financial statements which should be out in the next few weeks
In chapter 3 professional liabilty of auditors
Caparo case..the auditors were not held liable ,i want to ask “caparo acquires some shares first ..when it acquired shares ,are not they automatically become part of the company,ok,auditors owe duty of care to client as a whole,(not to individual members),had not they were negligent in front of their client?
2nd question
in chapter 6:in using the work of internal auditor,”auditor muct agree the scope and extent of work to be used,this should “must” be agreed with the chief internal auditor,,i want to ask “when in engagement letter it has been agreed that client will provide access to all records transactions and personnel,,,why a further agreement is needed?””is it bcoz the audit file will speak for itself in the court of law?I don’t understand the last part of your first question! Duty is owed to the company which is the AGGREGATE of the members and not individual members. And certainly no duty to people who are merely thinking of investing!
Question 2 – “access” involves the right to ask questions and to expect honest answers to those questions. Asking the internal auditors to assist in the work of the external auditors is WAY BEYOND “access”
Ok?
sir.
In my first question,if suppose caparo had some shares and THEN it had purchased further shares to obtain control,,,in that case would there be a duty of care????
Sir…in audit of related party ..auditor must ensure that all related party transactions are disclosed in the financial statements…my question is “If whatever transaction the client enters into with its related party,,is disclosed in the financial statements ,, then auditor has no problem…i mean Is any transaction with related party allowed, provided that it is disclosed in the financial statements???”Question 1, Caparo DID have. 7% holding at the time Touché gave their audit opinion. The auditors owe their duty to the COMPANY and not to individuals who hold shares in that company.
That was one of the major points (if not THE major point) of the outcome of the case
Question 2, yes, all related party transactions are allowed so long as they are fully disclosed. In fact, that’s not quite true under English law where some transactions with directors are specifically not allowed but, if you’re doing international variant, that’s not going to come up. It’s unlikely to appear even in the UK variant
Ok?
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