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Q1(a)
1. The Q state that not to include the ROMM related to biological asset & bearer plant? But the last section of“Identification and potential misclassification of assets” discussed?—————————————————————————————————————————–
2. Tutorial note: Can give an example of it?(in relation to assessing whether there are any reasons to doubt whether ProPack can continue the development)
——————————————————————————————————————————Q1(d)Audit implication of email from Len Larch
3. 3rd paragraph:” Therefore the auditor should ensure a full knowledge and understanding of the laws and regulation relevant to the use of chemicals…”
Does it unreasonable? As the ISA state that the auditor can’t have or expected to have the full knowledge on the legal requirement so therefore they can’t be expect to detect all non-compliance (NOCLAR)
I cannot reply to these without the Qs & A to hand – I will reply to you tomorrow. (Please note that “does it reasonable” makes no sense – presumably you are asking whether something IS unreasonable.
1. READ the Q: “You should not include risks of material misstatement relating to the VALUATION of the company’s bearer plants or biological assets, which will be evaluated separately.” Presentation and disclosure are different assertions.
2. I do not have time to work out what additional points the marking team might have given credit for. The TN is just saying the list of points is not exhaustive – but 99% of answer points for which candidates would have got credit are in the preceding list.
3. The answer states “the auditor should ensure a full knowledge and understanding of the laws and regulations relevant to the USE OF CHEMICALS in the COMPANY’S FARMS” – “full” might be a bit strong but compliance with environmental regulations is fundamental to farming – so it is not unreasonable to expect the auditor to be aware of banned substances or practices in farming.3. As I remembered what you had said before that we can’t expect the auditor to obtain the full understanding of each piece of the laws and regulation of the client business as each business have different law and regulation involved so that why I ask which concern the “full” may not be appropriate although agree that auditor should have obtain and understand the environmental regulation that the entity involved
But thank you for your answer anyways.
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