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Sir, after continuous listening to your lectures please, I want you to see the following mostly if they confirm the right assertions :
1) Agree total of receivables ledger to the control account to verify accuracy and completeness
2) Inspect correspondence with customers to identify argument or agreement of account balance to verify existence assertion3) Inspect board minutes to identify any issue related to debtors account to verify existence, valuation and completeness
4) Inspect receipts after year end and agree to sample of invoices to confirm valuation , existence and completeness
5) Obtain ages analysis report to very if an allowance or written down of irrecoverable amount of receivables
6) Obtain permission from client and perform receivables circularization to confirm existence
7) obtain sample of invoice and cast and agree with receivable ledger to confirm arithmetic accuracy and completeness
Please sir. correct me for any error or knowledge gap .
I just want to pass AA as this is my 3rd attempt.As you know, I cannot provide a marking a service and what you ask for here is little different to that. However, what you write here looks reasonable. Most importantly you should feel that you have a better understanding of the subject matter – rather than that you have learnt it. I recommend to you the “Read the mind of the AA marker article” which is sticky posted at the top of this forum.
Thank you sir. , please , in kaplan auditor’s respond to asset vein overvalued and profit overstated due the depreciation charge reduction as asset lives extension ,
it’s says discuss with directors the rationale for extending asset lives and reducing depreciation rate.
It further says the revised useful life of a sample of assets should be compare to how often the asset are replaced as this will provide assets useful life!
Please , could you interpret what this response apart from the discussion part. I don’t understand how this provide evidence of assets useful life to the revise ones.
Thank you sir .
Useful lives are inherent in depreciation rates – e.g 25% straight line = 4 years, 20% = 5 years. These are accounting estimates. Sometimes these will be reflected in asset replacement policies – e.g. to replace all computers every 4 years. Comparing the age of assets disposed with the policy is one of the best sources of evidence to confirm the reasonableness of useful lives. E.g. if computers are replaced after 3 years but depreciated over 4 years the estimated useful is too short – this would also be reflected in losses on disposal (writing off the carrying amount that should have been depreciated if a more appropriate depreciation rate had been used).
If in another scenario you were looking for useful lives being underestimated (too short rather than too long) you would expect to see this reflected in the non-current asset register as fully depreciated assets.
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