PYQ JUNE 2015

June 2015 Q5 part c (i) 1) " In addition, the practitioner does not need to comply with ISAs as these only relate to external audits." If the practitioner not comply with ISA ,how do they know the Financial Statement is according to the Financial reporting framework? --------------------------------------------------------------------------------------------- JUNE 2015 Q4 Deficiencies 2) "Purchase invoices are not sequentially numbered. Failing to sequentially number them means that Cherry’s finance department are unable to monitor if all invoices have been completely recorded; If the invoices are sequentially numbered, then a sequence check can be performed for any unrecorded invoices." How to check/know the sequentially numbered invoice is unrecorded? How the sequence check can identify the unrecorded invoice? ------------------------------------------------------------------------------------------ June 2015 Q2 (b) (3) "Capital expenditure committee – Select a sample of capital additions during the year and confirm through a review of the capital expenditure committee minutes that this purchase was authorised. – Review a sample of capital expenditure purchase orders for evidence of authorisation by the capital expenditure committee" What is the difference between the capital addition and the capital expenditure purchase orders and the capital expenditure committee need to authorize 2 documents? ----------------------------------------------------------------------------------------------- June 2015 Q1 (4) "This represents a self-interest threat as the audit firm may be perceived as performing the role of management by attending these meetings and this threatens objectivity." Why performing the role of management is self interest threat but not self review threat? Thank you.