• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Substantive procedures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Substantive procedures

  • This topic has 2 replies, 2 voices, and was last updated 8 months ago by Kim Smith.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 2, 2022 at 3:02 pm #657144
    Emad..
    Member
    • Topics: 11
    • Replies: 6
    • ☆

    Hi, sir hope you doing fine.

    I wanted to ask whether it is a must for to us include IAS or IFRS standards number we writing the substantive procedures for disclosure.

    E.G (research and development substantive procedures)
    1. Review the adequacy of the disclosures to assess whether it is in accordance with accounting standard and local legislation

    2. Review the disclosures for intangible assets in the draft financial statements to
    verify that they are in accordance with IAS 38 Intangible Assets

    I write the number 1 usually and wanted to know whether will I gain 1 mark or not for the procedure I have written

    And sir can you explain the substantive procedure used in the kit which I don’t understand

    Perform a proof in total calculation

    where I can and where I can’t use this procedure and what it means

    Thanks a lot in advance for the help sir.

    June 2, 2022 at 4:25 pm #657154
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6804
    • ☆☆☆☆☆

    As indicated by the most recent examiner’s reports – to refer to “reviewing the disclosure is in accordance with accounting standards” is enough – you don’t need to reference IFRS Standards – I don’t think you need to reference “companies act legislation” (or similar) unless it is something that might be prescribed in legislation – e.g. requirements to disclose directors’ remuneration.

    June 2, 2022 at 4:34 pm #657155
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6804
    • ☆☆☆☆☆

    “Proof in total” also called “reasonableness test” is a substantive analytical procedure relevant to the assertions of completeness and accuracy of items in profit or loss. It is a calculation of the auditor’s expectation of what an amount should be – if the amount recognised in the financial statements is sufficiently close/within performance materiality, it is materially correct.

    Examples (simplified):
    Average # of employees on payroll x average weekly wage = salary expense
    (Opening cost of a class of PPE + additions – disposals) x depreciation % = depreciation expense
    Average monthly overdraft x average borrowing rate for the year = interest expense

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • afital12 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • afital12 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy