- This topic has 8 replies, 4 voices, and was last updated 9 years ago by
.
- Posts
Hi Mike,
Hope you’re well.
What is the best approach to scenario based questions that ask: what matters should be considered?
Is there a standard layout/approach I can apply to my answers?
Thanks
Not really any standard that I can think of. I suppose that you should be thinking about matters such as appropriateness of accounting treatment, materiality, stakeholder concerns, disclosure, written representations, minutes, correspondence, outside experts, discussing with directors, what happened last year if applicable, internal auditors involvement, audit committee, the cash element of the transaction, authority, correctness and completeness of recording (these are thoughts tumbling out of my head and my typing isn’t fast enough – I know for a fact that I thought of another one, but lost it whilst typing)
It could be the case that none of these is appropriate or fits the question scenario but that’s the sort of matter my mind would be moving towards
Difficult to answer without a specific question in front of me but, if I had a question in front of me, you would be able to read the printed solution for yourself!
Thanks for the suggestions Mike.
I was thinking more broadly along the lines of: materiality, standard, treatment; or materiality, risk, standard, opinion.
Sound sensible?
It all depends on the precise wording of the requirement and how many marks the question is worth
Either of your suggestions would fit, but there’s only 4 marks there, at best!
Hi Sampson,
I think for maters to be considered, I use the general principle of;
Materiality – Calculate the materiality and make a comment on it (usually a mark for it)
Correct/Incorrect Treatment – Read the question to see what treatment has been done (usually you will have to identify the incorrect treatment and suggest the correct treatment for it or what has been done and what should be done).
Lastly combine the first 2 points with the Audit Procedures below;
Re- performance
Enquiry
Confirmation
Analytical Procedures
Recalculation
Inspection
Observation.Make sure you go into detail with each of these and relate to the scenario to earn 1-1.5 mark per point explained.
Best of luck!
- You must be logged in to reply to this topic.