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Hello Gromit
i have some important questions to ask. i appreciate your help on this. They are:
1) Engagement Letter: What do we need to learn about this letter for the f8 exam? I know what it includes such as objectives and scope of auditors and management and auditor responsibilities but what exactly do we have to memorize about this letter?
2) Chairman of the board: should this be a NED? if that is the case then what basis are we using to conclude this since UK corp gov code doesn’t mention anything about this
3) as i was doing some audit risk scenario questions then i came across many answers in bpp and (acca suggested) where the answer started with a short comment regarding the nature of the industry in which the company in the scenario question operates. for example regarding the volatility of the industry. does the f8 examiner expect us to understand the dynamics of every industry or is it going to be given in the question in the exam that how risky is a particular industry. do we need to use our own judgments for this?
1 You need to know the purpose and main contents of letters of engagement.
2 A chairman is not a NED. He or she is the Chairman. The chairman should meet the criteria of independence as set out for NEDs.
3 Talking about nature of industries etc relates to business rick, which is NOT on the F8 syllabus. You do not need to discuss industry volatility etc.
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