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Hello everyone
It may sound silly but do we have to learn standard numbers by heart and mention them while explaining our answers. For instance, in audit risks, R&D costs, there is risk of stating Research costs as of capital nature, thus, overstating assets. IAS 38 deals with R&D costs, do we have to mention that as per “IAS 38″Research should be expensed and so on….. or it is alright to just summarize that accounting standard on intangible assets require to expense Research costs in P&L and development costs to SFP etc…
I hope my query makes sense:)Regards
Hi @mawais263,
For AA it will “alright” if you just mention about the standard without the numbers.
For instance, “according to the relevant accounting standard, research cost should be expensed in the P&L …”But it is highly recommended to know the accounting standard numbers. It is just more professional. And also for FR you surely need to remember them.
The above, “according to the relevant standard…” answering technique would be better if you just restrict to using it when you aren’t sure of the standard and are afraid to mention the wrong one. Because stating the wrong standard number will give a bad impression to the examiner.
But about the ISA, the Auditing Standards…you don’t need to remember them.
Hope this helps.
See tutor post here also https://opentuition.com/topic/isa-11/
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