hello gromit
please let me know why these two sentences saying to investigate and follow any "reconciling items". shouldn't it be NON reconciling items? if we as auditors compare supplier statements to purchase ledger and everything reconciles then whats there to investigate?
please help
"For a sample of trade payables balances, obtain supplier statements
and reconcile these to the purchase ledger balances, and investigate
any reconciling items"
"Select a sample of payable balances and perform a trade payables’
circularisation, follow up any nonreplies
and any reconciling items
between balance confirmed and trade payables’ balance: verifies
completeness and existence"
Ask the Tutor ACCA AA
some clarification needed
11y ago#1You want to see that the two totals can be brought into agreement (reconciled). For that you need to make adjustments eg cash paid by supplier, not yet received by us. That payment is a reconciling item.
So, a reconciling item is an item needed to reconcile two totals.
We don't talk about non-reconciling items. We would tend to say that two totals cannot be reconciled.
thanks very much for this.
another thing i noted is the extensive use of the word "review" in audit procedures particularly the substantive one. does it mean the same thing as inspect in the context of audit?
the reason i am asking this is because on many occasions in the past paper they have asked to describe procedures such as AEIOU and then suggest examples so i was thinking of suggesting the review based procedures under the heading "inspect"
is that ok?
11y ago#3There are two sorts of review.
Sometimes it is like:
Review the aged receivables analysis and enquire into amounts > 6 months old.
There 'inspect' is fine. 'Review' is sort of 'run your eye over'; 'inspect' probably implies a more precise examination.
The final review, just before signing the audit report, is to step back from the detail of the FS and considering overall whether the FS show a true and fair view.
thank you
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