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Hi Kim,
Good morning.
on the provision of non-assurance service, the code makes an exemption for services that are routine and mechanical in nature. what would this mean? what types are considered mechanical and routine?Accounting and bookkeeping services that are routine or mechanical:
(a) Involve information, data or material in relation to which the client has made any judgments or decisions that might be necessary; and
(b) Require little or no professional judgment.Examples of services that might be regarded as routine or mechanical include:
• Preparing payroll calculations or reports based on client-originated data for approval and payment by the client.
• Recording recurring transactions for which amounts are easily determinable from source documents or originating data, such as a utility bill where the client has determined or approved the appropriate account classification.
• Calculating depreciation on fixed assets when the client determines the accounting policy and estimates of useful life and residual values.
• Posting transactions coded by the client to the general ledger.
• Posting client-approved entries to the trial balance.
• Preparing financial statements based on information in the client-approved trial balance and preparing related notes based on client-approved records.Thanks.
one more thing, how much is expected to be written for risks? how much is enough?
I’m adopting this strategy for these questions:
– materiality- by value
-relevant accounting treatment.
– supporting evidence/link from the scenario.
– say the risks i.e. under/overstatement or lack of disclosures.
hope this is enough (regardless of the length of the sentences).Have you watched Steve’s lecture? https://opentuition.com/acca/aaa/acca-aaa-revision-lectures
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