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Mike
in question 1, when we are asked to identify and explain or evaluate audit risks or risks of MM then we only have to identify those risks and how those risks can lead to incorrect accounting treatment or disclosure and overstate or understate something.
We DONT have to suggest audit procedures right unless specially asked in the question?
i mean the procedures to verify the particular assertion because we had earlier identified that as an audit risk
please advise
thanks
I would agree with you, yes
There is a possible circumstance when you might feel inclined to move further than the question warrants
If it’s a 10 mark question and you can identify only 3 or 4 risks, your MAXIMUM mark for identifying 3 risks is, probably, 3 marks … and that’s not good enough
Try as you might you can think of no others and your 5 minutes planning time is fast disappearing
So build in the procedures
A page of 3 identified risks scores 3 marks
A page of 3 identified risks and 7 suggested procedures scores … 3 marks. But there’s the POSSIBILITY that a marker will look at those procedures and say “Hmm, yes, I can see what this student is thinking of here – I’ll use a bit of discretion and award another 1/2 mark / full mark / 1.5 marks ….”
3 points on a page scores 3 marks
10 points on a page scores 3 marks but at least there is the possibility of squeezing 1 or 2 more
OK?
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