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Hi,
Please see below query I have on this sample question I came across:
Audit and Assurance (AA)
March/June 2019 – Sample QuestionsQ 13 Which of the following details should be disclosed in respect of the revaluation of the head office if the auditor is to conclude that the disclosures are adequate?
(1) Effective date of the revaluation
(2) Name of the valuer
(3) The amount of the revaluation increase
(4) Carrying amount of the head office under the cost model
A 1, 2 and 3 only
B 1, 3 and 4 only
C 2, 3 and 4 only
D 1, 2, 3 and 4I cannot find reference to what should be disclosed in a revaluation note in the material –
or is this presumed prior knowledge?Thanks
FA knowledge of IAS 16. If you can’t remember you could guess – what is relevant for the user of the financials statements to know? The answer is everything except 2 – it matters not who valued the property – the auditor must agree that it is materially corrected stated (otherwise the audit opinion would be qualified). Of course the note might state the name of the valuer – it’s just not an IAS 16 requirement.
Thanks !
Would these be a common type of question – ie on specific prior knowledge of IASs not specifically on the AA syllabus?
In this exam, only 1 of 15 Qs required knowledge of IAS disclosure requirements – but if you look at the form of the Q you can see that it could be answered from commonsense. (3) was in all the options – and there was at most one of (1), (2) or (4) to exclude. So I think candidates had a 50:50 chance of guessing between B and D.
It’s not possible to learn every bit of knowledge that might be examined – I don’t think it’s worth your time learning disclosure requirements on the off-chance that it might be examined.
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