Hi
I failed on paper f8 with the score of 49 on Dec 09.I supposed that I have some misunderstanding in this paper. And know ,I have some new ideas about this paper,but there's still some points I am not that sure about.
First it's about the difference between 'design audit procedure to test the system' and 'audit procedures to test the control'. I noticed that when examiner asked about testing the system, he listed some items such as 'select samples of sales invoice,trace to sales ledger to see if these invoices are correctly recorded' .But when the Q is 'test the control',this kind of answers are not involved in the answer lists.
So,if asked to test the system,we need not only do test of control ,but also conduct some substensive test of transations which mainly focus on the correctness of data recording and posting in the ledgers? But if asked to do test of control,we only need to detect the controls in the system (PAPAMOSS),and test them,and the main techniques are: observing ,inquiry,inspection and re-performanc. Is it right to say so?And are 're-performance' and 'walk through test' the same thing?I'm not that clear how to use 'walk through test'
And then,after testing the system,we would conduct other substensive procedures,just like analytical procedures and substensive test of detail. Is it right to say that'if you are satisied with the TOC & Substensive test of transation &AP,you can reduced the amount of test of detail conducted at the year end'?
Also, the audit objective is derived from the asserions of the Financial Statement.When we conduct audit procedures ,we must related to certain audit procedures.So ,are the audit objectives the same as assertions? for eg.the audit objective of account balance are " existence , completeness, valuation&allocation, rights &obligation'?
I am looking forward for your help!!!Thanks!!!
I failed on paper f8 with the score of 49 on Dec 09.I supposed that I have some misunderstanding in this paper. And know ,I have some new ideas about this paper,but there's still some points I am not that sure about.
First it's about the difference between 'design audit procedure to test the system' and 'audit procedures to test the control'. I noticed that when examiner asked about testing the system, he listed some items such as 'select samples of sales invoice,trace to sales ledger to see if these invoices are correctly recorded' .But when the Q is 'test the control',this kind of answers are not involved in the answer lists.
So,if asked to test the system,we need not only do test of control ,but also conduct some substensive test of transations which mainly focus on the correctness of data recording and posting in the ledgers? But if asked to do test of control,we only need to detect the controls in the system (PAPAMOSS),and test them,and the main techniques are: observing ,inquiry,inspection and re-performanc. Is it right to say so?And are 're-performance' and 'walk through test' the same thing?I'm not that clear how to use 'walk through test'
And then,after testing the system,we would conduct other substensive procedures,just like analytical procedures and substensive test of detail. Is it right to say that'if you are satisied with the TOC & Substensive test of transation &AP,you can reduced the amount of test of detail conducted at the year end'?
Also, the audit objective is derived from the asserions of the Financial Statement.When we conduct audit procedures ,we must related to certain audit procedures.So ,are the audit objectives the same as assertions? for eg.the audit objective of account balance are " existence , completeness, valuation&allocation, rights &obligation'?
I am looking forward for your help!!!Thanks!!!
