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1
[17:53:58] --------------------------ACCA Chat--------------------------
[17:54:15] --------------------------Paper F8--------------------------
[17:56:01] ratna1238: hello room
[17:57:16] marwil47: hello
[17:57:30] Shamz: hi..
[17:58:22] ratna1238: http://www.opentuition.com/forum/viewtopic.php?f=40&t=7033
[17:58:49] ratna1238: I hope everyone has downloaded the FUTFO file for today´s session
[18:01:54] ratna1238: so.. how many ppl do I have??
[18:01:58] Haroon Khan : ,,..........hi
[18:02:02] Shamz: hi..
[18:02:08] azhar: no hello hi
[18:02:08] nadii: 8 i guess
[18:02:11] azhar: come to the session
[18:02:18] ratna1238: kewl
[18:02:22] ratna1238: shall we start??
[18:02:28] Shamz: yep
[18:02:29] nadii: yes
[18:02:35] ratna1238: has everybody got the q for today´s session??
[18:02:42] mandy87: yes
[18:02:48] gutsychyk: yessss
[18:02:55] marwil47: yup
[18:03:01] nadii: yes
[18:03:14] ratna1238: good
[18:03:18] ratna1238: i love it !!!
[18:03:19] ElenaRu: yes
[18:03:25] ratna1238: now lets have a look at the diagram
[18:03:50] ratna1238: can you tell me wot the diagram says?
[18:04:10] ratna1238: I will start first
[18:04:32] ratna1238: Shareholders own the Company, then appoint Directors to...
[18:04:33] kemikings: ok
[18:04:45] marwil47: ...manage the company
[18:04:49] gutsychyk: run ad manage the business for them
[18:04:55] Shamz: directors manage the company
[18:05:01] ratna1238: {marwil47} {Shamz} {gutsychyk} yes
[18:05:04] ratna1238: then??
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2
[18:05:10] marwil47: and prepare the financial statements
[18:05:10] ratna1238: the directors...
[18:05:16] ratna1238: kewl
[18:05:18] Shamz: directors prepare the financial statements
[18:05:24] ratna1238: yup
[18:05:26] ratna1238: then??
[18:05:39] gutsychyk: They are entrusted by shareholders that they will run it in the most profitable
sincere manner.
Directors are accountable for their decisions, procedures and operation of a business to the
shareholders. This check is usually done by means of Financial statements.
[18:05:45] Shamz: shareholders appoint independent auditors
[18:05:56] ratna1238: {gutsychyk} {Shamz} yes, and??
[18:05:58] kemikings: they are stewwards
[18:05:59] Haroon Khan : and auditors increases the confidence of stake holder on f/s
[18:06:07] ratna1238: marvelous!!!
[18:06:18] gutsychyk: Auditor is a person who is also appointed by shareholders who performs checks
on the financial statements as to confirm they r not partial or unfair, to detect any fraud or
misrepresentation by directors, whether the statements confirm the generally accepted accounting
principles and confirm to the
[18:06:36] marwil47: the shareholders appoint the auditors who in turn audit the fin stats that they use
to measure the performance of the company
[18:06:40] nadii: they appoint the auditor to check the accuracy and reliability of the financial
statements
[18:06:47] ratna1238: yep. I love it
[18:06:54] Shamz: auditors design a conclusion on the financial statements and enhance the degree
of confidence of shareholders
[18:07:09] nadii: and to check vthe compliance of ifrs
[18:07:16] ratna1238: {Shamz} auditor give OPINION ;)
[18:07:21] gutsychyk: to the law. This check makes the financial statement more valuable and
people (shareholders, customers, creditors) are likely to trust it more than they would have if it was left
unaudited. Inshort it adds credibility to the FS.
[18:07:24] ratna1238: marvelous
[18:07:32] ratna1238: {gutsychyk} yes
[18:08:05] Haroon Khan : on the basis of audited f/s ,,the share holder decides whether to further
invest in the com ..or nt
[18:08:35] ratna1238: ok
[18:08:38] gutsychyk: Shareholders are the group of people who own the company and might not
necessarily participate in the day to day running of the business. They appoint directors to work for
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3
them on their behalf to manage their companies. They get to know how well the directors have
exercised their powers in running
[18:08:48] ratna1238: ok
[18:08:50] ratna1238: kewl
[18:08:52] gutsychyk: the business by financial statements prepared during/at the end of the
financial period.
[18:08:59] ratna1238: right
[18:09:07] ratna1238: what does accountability mean??
[18:09:34] Haroon Khan : means that the directors are anserable for their action
[18:09:45] Haroon Khan : their decision s
[18:10:02] ratna1238: {Haroon Khan } so if they did something wrong they can be fired or even put to
jail??
[18:10:06] dorcas: it means giving account
[18:10:16] kemikings: yes
[18:10:27] azhar: hmm
[18:10:47] dorcas: giving account of the company entrusted to the directors
[18:10:47] Haroon Khan : {ratna1238} right
[18:10:50] marwil47: it means that the people in positions of power(the directors) can be held
accountable for their actions
[18:11:15] ratna1238: {Haroon Khan } {marwil47} yes
[18:11:24] kemikings: why are they also called agents?
[18:11:36] ratna1238: the key word is RESPONSIBLE for their ACTIONS
[18:11:46] Shamz: the directors are given the assets of the company and they supposed to manage
them in an acceptable manner and they accountable for their actions
[18:11:52] azhar: cuz they wont be liable for their work
[18:11:54] ratna1238: {kemikings} yes you can call them agents
[18:12:00] dorcas: because they work for shareholder
[18:12:04] Haroon Khan : accountabilty for directors are necesarrry ....coz they run the whole
co...and share holder are not awear what is going on in the co
[18:12:11] ratna1238: {azhar} the directors are liable for their work
[18:12:13] gutsychyk: agents r ppl who act for someone, they act for shareholders hence called
agents
[18:12:24] nadii: also they are called the stewards or the custodians
[18:12:28] marwil47: they are called agents because they are acting on behalf of teh shareholders
[18:12:37] ratna1238: {nadii} that is right... stewards
[18:12:39] azhar: but if they working in the defined premises they wont be
[18:12:44] ratna1238: {marwil47} yes
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4
[18:12:51] ratna1238: {azhar} how do u mean.
[18:12:56] azhar: i mean
[18:13:12] ElenaRu: What';
[18:13:17] marwil47: they are the ones entrusted with the daily operations of the company so as to
satisfy the shareholders interest
[18:13:40] azhar: directors are the agents of the company and as they are agents they have some
constraints for work and if they do so then they wont be liable ...
[18:13:55] ratna1238: {azhar} directors are responsible for their actions in the company, they do the
operations of the company, so if they decide wrong decision or caused the company to run down
by fraud, they r responsible and can be sacked or even jailed
[18:14:08] ElenaRu: Directors acts as stewards of the shareholder´s investment.
Directors are also agents of the shareholders.
[18:14:20] ElenaRu: What is the difference between
[18:14:24] ElenaRu: - steward
[18:14:28] ElenaRu: and agent?
[18:14:35] ratna1238: {azhar} r u ok with that??
[18:14:40] ElenaRu: it's the same - I think
[18:14:41] azhar: they will be liable for the company and not for the shareholders
[18:15:06] ratna1238: {azhar} directors r responsible to the shareholders cuz they r basically their high
BOSS
[18:15:09] nadii: stewards basically means the custodians
[18:15:23] marwil47: {ElenaRu} agent and stewards have the same meaning
[18:15:23] nadii: the directors are the custodians of the company
[18:15:26] Sosh2: Steward looks after and an agent represents
[18:15:34] azhar: we are talking abt when they are liable or not..
[18:15:39] Haroon Khan: steward means ...........the ones who manage and run the company
[18:16:00] ElenaRu: but an agent - also - can act from the name of the owner
[18:16:19] ElenaRu: and in this case - he also manage and run the company..
[18:16:20] ratna1238: ok ppl, help me to explain to azhar if the directors are liable for their actions
[18:16:21] Haroon Khan: no agent ,,,,,,,,,,work on behalf of principle
[18:16:34] Haroon Khan: and principle is director
[18:16:47] nadii: basically
[18:17:05] nadii: the directors run the company
[18:17:05] azhar: guyz hold on
[18:17:09] azhar: dont panic
[18:17:23] nadii: they are delegated the power of decision making by the shareholders
[18:17:28] mandy87: shareholders appoint the directors so they are liable to the shareholders
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5
[18:17:31] kemikings: pls waht's d diff btw purpose, objective
[18:17:38] Sosh2: Directors have a legal responsbility to the shareholders to govern a company
[18:17:49] azhar: directors have the stewardship of the company and they are liable or accountable
of there acts which are causing the losses....
[18:17:57] nadii: and even though the shareholders are the owners they usually don take part in
everyday business so being the agents they are definitely liable
[18:17:57] kemikings: and reason of audit
[18:18:00] plsanneh: the principal appoints the agent to act on his behalf
[18:18:01] Haroon Khan: directors....if not liable the........................then they make their jobs power
full,,,taking exceive salarieries
[18:18:33] Haroon Khan: and work full time for ther own interest ...not work in the interest of co
[18:18:41] ratna1238: {azhar} lol
[18:18:45] ratna1238: ok lets make it simple
[18:18:49] Haroon Khan: and .....fiduciary duty will breach'
[18:18:51] ElenaRu: {Haroon Khan} it's an agent conflict
[18:18:52] azhar: hmm
[18:18:54] plsanneh: Shareholders appoint directors to run the business on their behalf
[18:18:54] ratna1238: {azhar} u own a shop
[18:19:02] azhar: yes i do
[18:19:06] ratna1238: {azhar} u employ me there to run the shop
[18:19:14] azhar: yes
[18:19:30] ratna1238: {azhar} then I steal some stuff and sell some stuff and put some of the profit in
my own pocket
[18:19:33] ElenaRu: {ratna1238} in this case - who are you -a steward or an agent?
[18:19:37] ratna1238: {azhar} wil u sack me?
[18:19:41] plsanneh: {ratna1238} then u ar d agent in dis case
[18:19:47] ratna1238: {azhar} report to the police for stealing??
[18:20:00] azhar: got u
[18:20:04] ratna1238: {azhar} good
[18:20:05] ratna1238: now
[18:20:18] ratna1238: what is FIDUCIARY RELATIONSHIP ?
[18:20:32] gutsychyk: relation ship of trsut
[18:20:41] gutsychyk: they entrsut directors
[18:20:45] ratna1238: {ElenaRu} I am both a steward and agent
[18:20:55] Haroon Khan: fiduciray relation is...............to act in the best interest of share holder
[18:20:57] Shamz: hmmm
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6
[18:21:09] gutsychyk: they trsut they will do good, when they can do goood
[18:21:16] ratna1238: come on... keep it going :D
[18:21:52] Haroon Khan: and their interst dont conflict ,,,with the interest of sh.holder
[18:22:13] plsanneh: Fiduciary relationship means two parties in a relationship where one act in the
best interest of the other
[18:22:24] ratna1238: {plsanneh} well done
[18:22:42] Haroon Khan: {plsanneh} yap ur right
[18:22:44] ratna1238: that is wot Fiduciary relationship is
[18:22:49] ratna1238: moving on
[18:22:55] ratna1238: now
[18:22:59] marwil47: it is the responsibility of acting in good faith. in this case the directors are making
decisions in the best interest of the shareholders, i.e making the sound decisions that will benefit the
shareholders et al
[18:23:18] Haroon Khan: {marwil47} hmm
[18:23:29] ratna1238: we see.... that the directors are the one that is working in the company, the
shareholders are not there doing the day to day operation
[18:23:52] ElenaRu: move on
[18:23:55] ratna1238: the directors produce FSs to the shareholders as we all know
[18:24:02] nadii: yes
[18:24:06] Shamz: yes
[18:24:10] dorcas: yes
[18:24:11] ratna1238: the shareholders employ external auditors
[18:24:30] mandy87: usually required by law
[18:24:37] Haroon Khan: yeah
[18:24:41] ratna1238: {mandy87} depends on the size of the company
[18:24:43] plsanneh: to check on the accuracy of those FS
[18:24:51] Sosh2: yes depends on the size of the company
[18:25:03] dorcas: in annual general metings
[18:25:04] mandy87: k
[18:25:12] ratna1238: anybody knows the limit not required to have audited FSs?
[18:25:21] Haroon Khan: and to increase the confidence of readers of f/s
[18:25:25] Sosh2: is it £1.5m?
[18:25:32] ElenaRu: in each jurisdiction there are own rules
[18:25:36] kemikings: what do u mean on d size of the coy
[18:25:40] Haroon Khan: oopz ,,,,,,don
[18:25:42] Sosh2: Sorry 1.5m of turnover
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7
[18:26:09] nadii: also doesnt it deend on whether its a plc or not?
[18:26:10] Haroon Khan: {kemikings} small,,medium ,,large co
[18:26:12] nadii: depend
[18:26:17] dorcas: yes
[18:26:23] Shamz: depends i guess
[18:26:35] ratna1238: under 6.5million pounds turnover is not required to have audited FSs
[18:26:38] Haroon Khan: {nadii} ,plc........must be audited
[18:26:47] nadii: yes i know
[18:26:47] kemikings: so, u appoint auditors accoding to ur size?
[18:26:47] Haroon Khan: by external auditeor
[18:26:51] ratna1238: ok now
[18:26:56] ratna1238: moving on
[18:27:05] ratna1238: What is the purpose of assurance engagement?
[18:27:26] nadii: auditors confirm to the principals that the agents worked right.
[18:27:28] mandy87: to provide a degree of confidence to shareholders
[18:27:38] ElenaRu: for e.g. in Russia - there are 2 cases when financial statements should be audited
- 1) depends on the revenue (if more then I don't remember which amount) or 2) balance value also
- is more then .... amount
[18:27:44] Sosh2: to give an opinion to enhance degree of confidence of whatever specified criteria
is
[18:28:03] nadii: its giving an assurance that the fs are true and fair and they are designed according
to ifrs
[18:28:12] dorcas: to express a independent openion
[18:28:25] ratna1238: obviously different country would have their own different limit of not to have
audited FSs
[18:28:47] ratna1238: ok, I need 2 points for the purpose of the assurance engagements
[18:28:55] ratna1238: 1. degree of confidence
[18:29:00] ratna1238: 2. ??? anybody??
[18:29:11] Sosh2: independent
[18:29:25] ratna1238: shall I tell u?
[18:29:30] mandy87: a conclusion that the directors have performed
[18:29:35] nadii: yes please
[18:29:36] ratna1238: increase the confidence and reduce the risk of the user of those services
[18:29:36] Haroon Khan: {ratna1238} yeah
[18:29:40] kemikings: to increase d level of reliance on d fs
[18:29:44] dorcas: openion
[18:29:54] Shamz: to give an independent opinion of the evaluation of the subject matter (F/S)
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8
[18:29:58] dorcas: and independence
[18:30:00] ratna1238: reduce risk and increase confidence. that 2 points
[18:30:06] ratna1238: moving on
[18:30:10] Sosh2: ok
[18:30:13] ElenaRu: {ratna1238} to express an opinion and to get reasonable assurance thet FS are
presented in true and fair view and that they are free from material misstatements
[18:30:17] ratna1238: What is the objective/definition of assurance engagement?
[18:30:21] faizanahmed112002: Assalam Alaikum
[18:30:24] ratna1238: {ElenaRu} that is this one :D
[18:30:35] ratna1238: guys... lets do this for fun....
[18:30:53] ratna1238: type in the objective / opinion without looking at the book
[18:30:56] ratna1238: see wot you can do
[18:31:04] ratna1238: ready..... steady...... GO!!!
[18:31:11] ratna1238: I want everyone typing now, including me
[18:31:12] ratna1238: ;)
[18:31:20] ratna1238: see wot we come out with
[18:31:20] ratna1238: :D
[18:31:31] marwil47: they are prepared in accordance with a accounting rule/policy in effect
[18:31:48] Sosh2: independent investigation to see if F/S give a true and fair view?
[18:32:13] nadii: no material misstatements or mistakes
[18:32:25] ElenaRu: ratna1238: type in the objective / opinion without looking at the book - can you
ask the question in another way? I don't understand the question in English
[18:32:59] ratna1238: is to enable the practitioner (the auditor) to express an opinion whether the
subject matter (FSs) in all material aspect is prepared true and fair view in accordance to Financial
Reporting Standards
[18:33:17] ratna1238: {ElenaRu} you did that before I put in the q ;)
[18:33:20] plsanneh: The objectives of assurance engagement is to reduce the risk that the auditor
might encountered in the overal audit process
[18:33:27] Shamz: is to enable the auditor to express an opinion whether the f/s's have in prepared
according to the standards
[18:33:34] ElenaRu: oh! so to my definition it's necessary to add - about in accordance with IFRS
[18:33:35] ElenaRu: thanks
[18:33:38] ratna1238: {Shamz} u miss the true and fair view
[18:33:47] ratna1238: there are main elements in there
[18:33:52] ratna1238: that you need to include
[18:33:56] ratna1238: 1. auditors
[18:34:02] ratna1238: 2. opinion
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9
[18:34:06] ratna1238: 3. FSs
[18:34:13] ratna1238: 4. True and Fair
[18:34:17] Shamz: yep.. sorry
[18:34:25] ratna1238: 5. material aspects
[18:34:41] ratna1238: 6. in accordance to the Financial Reporting Standards
[18:34:48] ratna1238: get that 6 points and link them
[18:34:54] ratna1238: is that cool??
[18:34:57] kemikings: audit is part of assrance engmt
[18:35:18] shelly2305: well said
[18:35:33] ElenaRu: {ratna1238} am I right understand - that this deinition - should be an answer - for
the question about "What is the objective of audit engagement?"
[18:35:37] Sosh2: cheers
[18:35:50] ratna1238: {ElenaRu} yes.
[18:36:01] ratna1238: ok shall we move on?
[18:36:02] ElenaRu: ok
[18:36:05] nadii: yes
[18:36:05] Haroon Khan: {Sosh2} ...................
[18:36:08] Shamz: oki
[18:36:19] marwil47: {ratna1238} so the 6 points you listed are the key words that you should state in
describing the objectives?
[18:36:20] ratna1238: Name 2 types of assurance engagements.
[18:36:26] ratna1238: {marwil47} yes
[18:36:31] ElenaRu: reasonable & moderate
[18:36:33] nadii: limited assurance and reasonable assurance
[18:36:38] Sosh2: limited and reasonable
[18:36:44] Shamz: reasonable assrance engagement and limited
[18:36:54] Haroon Khan: possitive ,,negative assurance eng
[18:37:01] ratna1238: yep
[18:37:04] ratna1238: a resonable assurance engagement - positive assurance
a limited assurance engagement - negative assurance
[18:37:18] shelly2305: positive negative assurance
[18:37:25] ratna1238: now... why the reasonable assurance is called Positive assurance??
[18:37:50] Haroon Khan: {ratna1238} don no
[18:37:56] nadii: because its when their is sufficient documents and information for the auditor
[18:37:58] Sosh2: low level of risk so good
[18:38:09] ratna1238: {nadii} I like it
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10
[18:38:15] Shamz: a reduction in assurance engagement risk to an acceptable low level
[18:38:20] ElenaRu: cause we express positive opinion (the sentence with our opinion will be free from
the words" nothing come into out attention" etc)))
[18:38:22] nadii: and he regards his oinion though thats still only 60 to 70 percent
[18:38:33] nadii: as the auditor is not there in the day to day work of the company
[18:38:51] marwil47: it would be called positive because the practioner would gather sufficient
evident and conclude that the findings in all material respects conform to the suitable criteria
[18:38:51] ElenaRu: no
[18:38:59] ElenaRu: positive assurance - is 95%
[18:39:09] Shamz: ?
[18:39:09] nadii: are u sure?
[18:39:19] ElenaRu: yes
[18:39:32] gutsychyk: marwi, i agree
[18:40:06] nadii: okay i thought it was only 60 to 70 percent because the auditor can never judge the
intentions.and he is not there for the day to day running.he comes after the period end
[18:40:06] ratna1238: ok
[18:40:15] ratna1238: {nadii} not really
[18:40:26] ratna1238: it would be called positive because the practioner would gather sufficient
evident and conclude that the findings in all material respects conform to the suitable
criteria
[18:40:26] Haroon Khan: {ratna1238} plz explain
[18:40:26] nadii: ok
[18:40:34] ratna1238: as wot marvil said
[18:40:51] nadii: ok
[18:41:03] ratna1238: you see.... in reasonable assurance engament... ie external audit
[18:41:09] ratna1238: is a good example for it
[18:41:14] ElenaRu: move on
[18:41:17] Haroon Khan: hmm
[18:41:20] Shamz: its a concept relating to accumulating evidence necessary for the auditor to
conclude in relation to the subject matter info taken as a whole
[18:41:23] ratna1238: they auditors gather sufficient evidence
[18:41:28] ratna1238: {Shamz} that is right
[18:41:36] ratna1238: that is why it is called positive
[18:41:38] ratna1238: now
[18:41:40] nadii: ok
[18:41:46] ratna1238: a limited assurance engagement - negative assurance
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11
[18:41:53] ratna1238: why is it called negative assurance??
[18:41:56] ElenaRu: ratna1238: that is why it is called positive
[18:42:14] ElenaRu: {ratna1238} could you make a conclusion - why it's called positive assurance?
[18:42:31] ElenaRu: to summarise a discussion about it
[18:42:41] ratna1238: Shamz: its a concept relating to accumulating evidence necessary for the
auditor to
conclude in relation to the subject matter info taken as a whole
[18:42:51] ratna1238: and
[18:42:54] ratna1238: marwil47: it would be called positive because the practioner would gather
sufficient
evident and conclude that the findings in all material respects conform to the suitable
criteria
[18:43:04] ratna1238: {ElenaRu} r u happy with that??
[18:43:06] Sosh2: negative as it can only show an acceptable level of risk compared to reasonable?
[18:43:07] ratna1238: ;)
[18:43:20] nadii: the auditor may not have access to the records of the company or proper records
may not be provided or kept by the company for the period under examination.
[18:43:22] ElenaRu: I m thinking =)))
[18:43:24] Haroon Khan: where auditor would not get sufficent audit evidence
[18:43:34] ratna1238: {nadii} {Haroon Khan} yes
[18:43:43] ratna1238: so... its just a review from a distance
[18:43:46] nadii: whats the percentage?
[18:43:51] nadii: 40 45?
[18:43:54] ratna1238: not like intensive audit work
[18:43:55] Haroon Khan: to make a reasonable decision
[18:44:14] gutsychyk: is it appropriate to assign numerica values to them?
[18:44:18] Sosh2: Is negative assurance where nothing wrong can be found
[18:44:24] Shamz: sufficient appropriate evidence is obtained that includes obtaining an
understanding of the subject matter but in which procedures are limited relative to a reasonable
assurance engagement
[18:44:48] ratna1238: The objective of a review engagement is to enable a practitioner to state
whether, on the basis
of procedures which do not provide all the evidence that would be required in an audit, anything
that has come to the practitioner´s attention that causes the practitioner to believe that the FSs
are not
[18:44:48] ElenaRu: {Sosh2} yes!
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12
[18:45:01] ratna1238: are not prepared, in all material aspects, in accordance with an applicable
financial reporting
framework.
[18:45:03] ElenaRu: it's not a question of %% of assurance - am I right?
[18:45:10] Sosh2: so whilst the F/S could be seen to be true and fair it is more by luck than good
management
[18:45:19] ratna1238: look
[18:45:27] ratna1238: the reason why it is NEGATIVE is
[18:46:06] ratna1238: they did not gather enough evidence like the Audit work
[18:46:16] azhar: :)
[18:46:20] Sosh2: ok
[18:46:24] ratna1238: give me an example of this limited assurance engagement
[18:46:29] ElenaRu: review
[18:46:35] ratna1238: {ElenaRu} right review engagement
[18:46:40] nadii: interim audit
[18:46:50] ratna1238: who employs the auditor to do the review engagement??
[18:46:53] Shamz: review
[18:46:57] marwil47: now i understand, with the review, you are not doing as much extensive work!
[18:47:01] Haroon Khan: cash flow ..........review
[18:47:06] marwil47: as one would be with an audit
[18:47:19] ratna1238: {marwil47} that is right
[18:47:19] azhar: the board
[18:47:20] marwil47: where you gather this whole big heap of info to analyse etc
[18:47:22] ElenaRu: {ratna1238} but pls answer about per cent - can we measure limited assurance
with % of assurance (the same as positive for e/g/)
[18:47:23] Haroon Khan: for banks,,,,,if the the banks needs
[18:47:50] azhar: {ElenaRu} no we can't
[18:47:52] Sosh2: employed by shareholders to give some confidence before the audit|
[18:48:02] azhar: {ElenaRu} its all abt quality
[18:48:21] azhar: we just can say high or low levels
[18:48:22] ratna1238: {ElenaRu} I did not go to details with % but its a lot lower
[18:48:38] ratna1238: ok now
[18:48:49] ElenaRu: review usually is a must for SEC comnpanies
[18:48:54] ratna1238: guys... who employ the auditors to do the review engagement again??
[18:49:01] mandy87: shareholders
[18:49:02] kemikings: does review comes b4 audit
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13
[18:49:02] mandy87: ?
[18:49:04] ElenaRu: board of directors
[18:49:04] marwil47: shareholders
[18:49:08] azhar: board
[18:49:12] Shamz: shareholders
[18:49:14] Haroon Khan: no ............the directors
[18:49:19] dorcas: the shareholders
[18:49:24] Sosh2: {ratna1238} did I not try to answer this
[18:49:25] ratna1238: {mandy87} {ElenaRu} {marwil47} {azhar} {Shamz} NO!!!
[18:49:31] ratna1238: it can be anybody at all!!!
[18:49:37] ElenaRu: what do you mean under "employ? the audit engagement is signed by cEO
[18:49:39] Shamz: oh
[18:49:42] mandy87: ooo
[18:49:44] ElenaRu: not a borad of directors
[18:49:45] Haroon Khan: coz ........this is nt for share holders
[18:49:46] azhar: :o
[18:49:47] ratna1238: ie the directors, bank managers, creditors
[18:49:55] Sosh2: Oh
[18:49:57] Haroon Khan: {ratna1238} me right
[18:50:01] ratna1238: {Haroon Khan} yes
[18:50:19] ratna1238: ok
[18:50:21] nadii: ok i dint know that one
[18:50:21] marwil47: ok
[18:50:34] Haroon Khan: let me explain
[18:50:35] ratna1238: so... cuz those ppl can say... like the bank managers
[18:50:45] pjay: so who appoint the external auditor?
[18:50:57] ratna1238: say... why do I need to lend u money if I am not sure if you can repay me?
[18:51:02] pjay: shareholders or directors
[18:51:06] kemikings: shareholders
[18:51:12] ElenaRu: {pjay} stockholders' meeting
[18:51:12] ratna1238: so they employ the auditor to do the review
[18:51:15] ratna1238: that is one example
[18:51:19] totta: hello there
[18:51:22] kemikings: sec of state
[18:51:36] ElenaRu: {ratna1238} who employ - &
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14
[18:51:37] azhar: {ratna1238} :)
[18:51:55] ratna1238: {Haroon Khan} do u want to add something??
[18:51:59] ElenaRu: under the term "employ" you mean - to sign the agreement - or to choose an
auditor?
[18:52:03] Haroon Khan: if a comp needs a loan,,then the bank would ask for cash flow fore
cast....,,,,the bank will only trust on that cash flow ,,if the auditor
[18:52:07] pjay: what actually is the review engagement?
[18:52:16] Haroon Khan: reviewed it,,,,and
[18:52:48] ratna1238: you can review any parts of FSs or any reports of the company
[18:52:54] totta: review is i think less detailed than the statutary audit
[18:53:00] Haroon Khan: and for this review ,,,,,,,tthe directors .,..........appoint auditor,,,,,,,,..coz its only
bank req
[18:53:11] mandy87: alright
[18:53:16] nadii: haroon ure actually confusing me.sort of.
[18:53:18] Shamz: ok
[18:53:27] ratna1238: where audit is only statutory financial statement
[18:53:28] azhar: review = particualr account's audit
[18:53:37] Haroon Khan: {nadii} review ,,is nt full audit
[18:53:42] ratna1238: audit is regulated by law and regulation
[18:53:44] ElenaRu: {azhar} no
[18:53:44] ratna1238: review is not
[18:53:57] ratna1238: now... let me explain
[18:54:00] ratna1238: read this
[18:54:07] Haroon Khan: {nadii} it is a part of audit
[18:54:07] ratna1238: and you will get a better idea of the differences
[18:54:09] ElenaRu: {azhar} what you told - is limited procedures
[18:54:15] ratna1238: ready??
[18:54:18] marwil47: yes
[18:54:19] nadii: yes
[18:54:20] azhar: yeah
[18:54:22] pjay: yes
[18:54:24] Haroon Khan: yeah
[18:54:25] Sosh2: yes
[18:54:27] mandy87: yes
[18:54:30] kemikings: yes
[18:54:32] Shamz: yes
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15
[18:54:33] ratna1238: ok here it comes
[18:54:36] ratna1238: Difference between Review Engagement and An Audit
[18:54:36] nono: yes
[18:54:48] ratna1238: Practitioner is not carrying out an audit
[18:55:05] ratna1238: For an audit the user will always be the company´s shareholders
whereas for review engagement, the user could be whoever commissions the work eg:
[18:55:09] ratna1238: a. a bank wanting to know whether to maintain existing or extend further credit
facilities
b. the director of the predator company in a takeover situation
[18:55:37] ElenaRu: {ratna1238} you are right only partially
[18:55:48] ElenaRu: guys - if you want I can explain
[18:56:08] ratna1238: The subject matter of the RE and audit will be the performance of the business
and
the subject matter of will be financial statements BUT
a. the period reviewed could be any period determined in the terms of engagement rather
than the statutory reporting period subject to audit
[18:56:12] mandy87: {ElenaRu} not sure shes done yet
[18:56:21] ratna1238: {ElenaRu} I got this from the the book,
[18:56:21] ElenaRu: ok
[18:56:26] ratna1238: I conclude them from the book
[18:56:30] ratna1238: want me to finish??
[18:56:31] ElenaRu: I know it from practice =)
[18:56:34] ElenaRu: yes
[18:56:41] ratna1238: hm
[18:56:47] Haroon Khan: {ratna1238} plz carry on
[18:57:01] ratna1238: b. the FSs could be mgt accts, profit forecasts or similar reports, rather than the
statutory
FSs prepared under applicable law and accting stds which are the subject of an audit.
[18:57:05] mandy87: yeah
[18:57:13] ratna1238: The criteria for audited FSs are applicable law & accting stds, but for a review
engagement,
the criteria will be whatever is agreed in the terms of engagement.
[18:57:22] ratna1238: an audit needs sufficient appropriate evidence where a review engagement
the procedures
undertaken will normally be:
1. Analytical procedure on the FSs
[18:57:34] ratna1238: 2. enquiries of mgt and other relevant parties
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16
3. follow up procedures where analytical procedures and enquiries, indicate that material
misstatements might be included in the FSs.
[18:57:41] ratna1238: an audit report gives POSITIVE ASSURANCE whereas the report after a review
engagement
give NEGATIVE ASSURANCE.
[18:57:44] ratna1238: there u go
[18:57:51] ratna1238: a lot of diferences ;)
[18:57:57] Sosh2: thanks a lot
[18:58:00] mandy87: which book?
[18:58:02] marwil47: ok
[18:58:08] mandy87: thats what i wanna kno
[18:58:16] pjay: yes
[18:58:20] Haroon Khan: now ,its goood ,,,,,,,,,,
[18:58:29] ratna1238: kaplan
[18:58:33] ratna1238: I have both BPP and kaplan
[18:58:36] pjay: ok
[18:58:38] mandy87: k..i got bpp
[18:58:48] ratna1238: ok everybody happy with that??
[18:58:52] marwil47: yup
[18:58:52] ElenaRu: yes
[18:58:53] Shamz: yep
[18:58:54] Sosh2: ys
[18:58:56] gutsychyk: also, review engagement is less costly then audit engagement
[18:58:56] nadii: yes
[18:58:58] mandy87: very
[18:59:00] marwil47: very much so
[18:59:03] nono: yes
[18:59:07] ratna1238: {gutsychyk} yes
[18:59:16] Haroon Khan: heheheheh ,,,,,happppppppppppyyy :yes:
[18:59:27] ratna1238: kewl
[18:59:31] ratna1238: moving on??
[18:59:34] marwil47: yes
[18:59:38] Shamz: ya
[18:59:41] ElenaRu: {ratna1238} I didn't understan - WHO employ the auditors - what the answer?
[18:59:42] marwil47: lets move on :)
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17
[18:59:43] mandy87: k
[18:59:45] gutsychyk: one is carried on the basis of ias, n other on the basis of ethics
[18:59:46] Haroon Khan: hmmm
[18:59:49] Knife: apologies
[18:59:58] ElenaRu: {gutsychyk} no
[19:00:16] ratna1238: {ElenaRu} Shareholders employ the auditor to do the Statutory FS audit
[19:00:26] gutsychyk: i have a question though
[19:00:29] gutsychyk: shall i?
[19:00:36] ratna1238: anybody that has concern about the company can employ the auditor to do
the review engagement
[19:00:41] ratna1238: {gutsychyk} yes u can
[19:00:57] azhar: {ratna1238} :)
[19:01:03] ElenaRu: {ratna1238} how is in your countries - who sign the agreement with auditors -
shareholders of management of the company?
[19:01:30] Haroon Khan: {ElenaRu} ,,,,,,,,,,,,,..............share holder
[19:01:33] kemikings: i have a questn too
[19:01:41] ratna1238: {ElenaRu} I really don´t know.. I am a student. :D I havent checked that
[19:01:48] kemikings: can i
[19:01:49] ratna1238: each country will have different regulation
[19:01:53] Haroon Khan: {ratna1238} ,,it seems i m nt right here
[19:01:59] gutsychyk: hat can be advantages to the directors of providing negative assurance on
their cash flow forecast.
[19:02:01] azhar: {ElenaRu} audit committee signs
[19:02:05] gutsychyk: what
[19:02:09] ElenaRu: in Russia- it's management - per order from shareholder's meeting, cause
management acts as an agent
[19:02:11] Haroon Khan: {ElenaRu} good questionn
[19:02:12] ElenaRu: ok, anyway
[19:02:38] ratna1238: {ElenaRu} ok, we are going to learn this on the next session
[19:02:40] Haroon Khan: {ElenaRu} if the managment signs the agreement ,,,,,
[19:02:57] ElenaRu: {gutsychyk} pls, don;t confuse two different audit engagements:
[19:03:00] Haroon Khan: the how would ,,,independence be maintained
[19:03:06] ElenaRu: 1) review (moderate assurance)
[19:03:07] ElenaRu: and
[19:03:31] Haroon Khan: review is a separate thing
[19:03:39] gutsychyk: can sumone answer my question?
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18
[19:03:42] ElenaRu: 2) limited audit procedures (reasonable assurance ) - or - any audit procedures
with any assurance as well can be here =)
[19:03:43] Haroon Khan: don confuse it with audit
[19:04:07] Haroon Khan: review may be ............managment deal
[19:04:18] Haroon Khan: but audit a pure share holder matter
[19:04:24] ratna1238: {gutsychyk} management can employ auditor to do any review work
[19:04:39] Haroon Khan: review is a com requirement
[19:04:50] Haroon Khan: to make assure bank or
[19:04:51] gutsychyk: yeah ratna but !!
[19:05:02] gutsychyk: why would it be beneficial for director
[19:05:04] ElenaRu: {gutsychyk} the same advantages - as statutory audit
[19:05:19] ratna1238: {gutsychyk} the directors may need 2nd opinion
[19:05:22] ratna1238: ;)
[19:05:24] ElenaRu: because Review - is a stage of whole audit
[19:05:27] Haroon Khan: fianancial institution ,,,,,that we are enough strong ,,,to repay u loan ..
[19:05:32] azhar: is there any limitations for review engagements
[19:05:33] ratna1238: remember statutory audit is done only once a year
[19:05:46] Sosh2: this gives assurance to the onlookers that they are confident that outcome will be
favourable
[19:05:50] Haroon Khan: {azhar} yeah
[19:05:51] ratna1238: {gutsychyk} managment may need the review before the audit for other
purposes
[19:06:09] ElenaRu: {ratna1238} you confuse terms
[19:06:14] gutsychyk: thanks ppl
[19:06:16] Sosh2: {gutsychyk} this gives assurance to the onlookers that they are confident that
outcome will be favourable
[19:06:20] azhar: how many times a company have review engagements?
[19:06:21] Haroon Khan: {gutsychyk} nopz she is right
[19:06:27] pjay: what is the diff btn iterim and final audit?
[19:06:38] ratna1238: {azhar} as many times as possible if they have the money and for a purpose
[19:06:39] ElenaRu: review - is an interim stage of year audit
[19:06:42] ElenaRu: usually
[19:06:45] ratna1238: {ElenaRu} yes
[19:06:48] Sosh2: interim is early view
[19:07:00] ratna1238: {gutsychyk} are you happy with the answer??
[19:07:19] azhar: ok
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19
[19:07:21] kemikings: what abt d other assr engamnts
[19:07:25] gutsychyk: yes
[19:07:27] pjay: not
[19:07:30] gutsychyk: it was worth 4 marks
[19:07:40] gutsychyk: i dont kow which year though
[19:07:40] pjay: which one is done first?
[19:07:58] ratna1238: {pjay} hm.... we r going to learn internal audit on Chapter 5
[19:07:58] ElenaRu: {Sosh2} in some way
[19:08:05] Sosh2: {pjay} interim
[19:08:22] pjay: ok
[19:08:28] kemikings: can sm1 answer my questn?
[19:08:28] ElenaRu: {pjay} precise your question pls
[19:08:31] Haroon Khan: {Sosh2} these are two stages of external audit............
[19:08:34] nono: other assurnce hnternal audit
[19:08:48] ratna1238: when the internal audit do their work, the external audit then come once a
year to do their work, and check if they can use the work of the internal auditor so they dont have to
do so much external audit work
[19:08:52] kemikings: other assr engagmt
[19:09:02] kemikings: like agreed upon
[19:09:06] kemikings: compilatn
[19:09:09] Haroon Khan: {kemikings} ,,,,,,,,these are also review
[19:09:13] ratna1238: {pjay} internal audit can do any work assigned by the management or the
board
[19:09:32] azhar: {ratna1238} no
[19:09:34] ratna1238: ok shall we move on?
[19:09:41] Sosh2: ok
[19:09:42] ElenaRu: internal auditors are focused on controls
[19:09:42] ElenaRu: yes
[19:09:42] mandy87: yes
[19:09:43] azhar: internal auditor is an independent auditor
[19:09:52] azhar: he can chck whatever he wants
[19:09:55] nono: no
[19:09:57] Haroon Khan: {azhar} up to some extent
[19:10:05] azhar: no
[19:10:18] kemikings: what level of assr do other assr engemt give?
[19:10:27] Sosh2: {azhar} internal not entirely independent
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20
[19:10:33] azhar: he can chck all the things relating to company and will produce his report infront of
audit committee
[19:10:33] totta: reasonable assurance
[19:10:44] nono: not independent adutior
[19:10:44] kemikings: ok, tnx
[19:10:49] ratna1238: ok lets stop here
[19:10:58] ratna1238: we are out of our scope for today
[19:10:59] Sosh2: ok
[19:11:04] pjay: how can the internal auditor be independent?
[19:11:14] ratna1238: {pjay} that will be on the next chapter
[19:11:16] Haroon Khan: {azhar} by making the internal audit dept anserable to audit committe
,,,,,,,,,,
[19:11:16] happytogether4ever: internal
[19:11:22] happytogether4ever: are not independant
[19:11:23] Haroon Khan: {pjay} ...........
[19:11:36] ElenaRu: {pjay} because internal auditors can be fired by borad of directors
[19:11:36] ratna1238: ok ppl stop there
[19:11:37] happytogether4ever: it is not possible for internal audit to be independent. people
[19:11:43] ratna1238: stop and stop
[19:11:47] Haroon Khan: {ratna1238} u r right
[19:11:50] Sosh2: {pjay} think we will cover ths later shall we let ratna move on
[19:11:50] azhar: we r going out of the task
[19:11:53] nono: ok
[19:11:55] faizanahmed112002: internal audit is never independent
[19:11:55] azhar: stop pls
[19:11:56] Haroon Khan: yeah
[19:11:58] ratna1238: or I will turn to a red tomato
[19:11:59] ratna1238: like this
[19:12:02] ratna1238: :x
[19:12:04] faizanahmed112002: because internal auditors are under influence of management
[19:12:05] azhar: internal audit will discuss soon
[19:12:12] azhar: hold on guyz
[19:12:13] happytogether4ever: no voice chat?
[19:12:22] ElenaRu: {happytogether4ever} later! pls
[19:12:24] faizanahmed112002: and they will draw picture as required by management
[19:12:32] azhar: {faizanahmed112002} stop
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21
[19:12:38] ratna1238: {happytogether4ever} no cuz we need chat history for other ppl who cannot
attend the session
[19:12:42] marwil47: i think we need to stay on course for todays plan so as to not waste time
[19:12:48] Haroon Khan: {ratna1238} :(
[19:12:49] ratna1238: {marwil47} I agree
[19:12:59] faizanahmed112002: this is my frist day on opentuition chat
[19:13:01] ratna1238: :x
[19:13:08] ratna1238: another red tomato??
[19:13:08] mandy87: lets jst continue
[19:13:08] nadii: ratna move on
[19:13:11] faizanahmed112002: and i am studying F8, i want to join this group
[19:13:12] Haroon Khan: stay on topic..............plz
[19:13:13] gutsychyk: okay a question from me
[19:13:13] kemikings: likewise
[19:13:14] ElenaRu: {faizanahmed112002} it could be the last one =))
[19:13:15] azhar: ratna
[19:13:17] Sosh2: me to what is next
[19:13:18] ElenaRu: joke
[19:13:19] azhar: dont listen to them
[19:13:20] gutsychyk: to bring everyone back to topic
[19:13:24] ratna1238: OMG.... you cannot stop can u??
[19:13:27] faizanahmed112002: why elenaru?
[19:13:29] azhar: just move on;)
[19:13:30] ratna1238: NOW
[19:13:35] faizanahmed112002: okz
[19:13:36] ratna1238: OBJECTIVE OF AUDIT!!!
[19:13:39] ratna1238: tell me
[19:13:44] ratna1238: 6 points without looking
[19:13:45] faizanahmed112002: i can tell u
[19:13:50] faizanahmed112002: objective of audit
[19:13:52] azhar: to give an opinion abt the Fss
[19:13:54] ratna1238: type in if u guys r so eager
[19:13:56] ratna1238: everyone
[19:13:58] happytogether4ever: to check finacial reports
[19:14:05] nadii: financial statements
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22
[19:14:10] ratna1238: dont send until you have finished the whole sentence!!!
[19:14:26] happytogether4ever: that is the ultimate aim of audit. to provide an independent check
on the financial statements.
[19:14:33] ratna1238: {happytogether4ever} nope
[19:14:39] faizanahmed112002: the main purpose of external audit is to ensure the users of financial
statements that they show a true and fair picture of the entity
[19:14:40] Knife: to check to make sure the Financial staments are accurate as possible
[19:14:53] gutsychyk: to check the transprency of financial statements, to check if they r in
accordance with the law and free from mistatement n omission and fraud.
[19:15:02] Sosh2: The objective of an audit of financial statements is to enable the auditor to express
an opinion whether the financial statements are prepared,
in all material respects, in accordance with an applicable financial reporting framework. An audit of
financial statements is an assurance engagement.
[19:15:03] happytogether4ever: sorry, 112 answer is more accurate.
[19:15:06] ratna1238: {faizanahmed112002} not complete man... come one... u can do better
[19:15:09] Haroon Khan: the objective of audit ,,to make the fianancial statement reliable in the eyes
of investors,,,and to make sure sh.holder that com is being managed well
[19:15:14] ElenaRu: - to express audit opinion and get reasonbale assurance that FS are prepared in
accordance with IFRS/IAS/Statutory standards and presented in true and fair view and free from
material misstatements
[19:15:16] nadii: to check the financial statements reliability and accuracy and whether they give a
true and fair view in every material aspect and are according to the ifrs
[19:15:19] faizanahmed112002: ya
[19:15:25] Lenochek: to check if FS prepared according to IFRS
[19:15:35] mandy87: external auditors are appointed by shareholders to perform an analysis on the
f/s which are prepared by directors, and to provide a an opinion on the f/s
[19:15:52] Haroon Khan: and that f/s is prepared in acoordance with IFRS
[19:15:56] faizanahmed112002: role of an auditor is to make an opinion on correctness of financial
statements
[19:16:22] faizanahmed112002: gutsychyk, i want to ammend your definition
[19:16:27] ratna1238: ok.. when u have finished.... I want it finished in 1 minute from now
[19:16:30] ratna1238: or we never ends
[19:16:31] faizanahmed112002: u wrote free from miss statement
[19:16:43] ratna1238: here is the correct and complete one
[19:16:44] faizanahmed112002: but nothing is free from misstatement
[19:16:45] gutsychyk: yes i did
[19:16:48] ratna1238: Sosh2: The objective of an audit of financial statements is to enable the auditor
to
express an opinion whether the financial statements are prepared,
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23
in all material respects, in accordance with an applicable financial reporting framework.
An audit of financial statements is an assurance engageme
[19:16:52] faizanahmed112002: it is free from material misstatement
[19:16:55] azhar: the purpose of audit is to ensure the shareholders abt the stewardship if it is in right
hands or not:)
[19:17:08] gutsychyk: thanks for correction.
[19:17:10] faizanahmed112002: not only shareholders, all stakeholders
[19:17:12] marwil47: the objective is to enable the auditor to the express and an opinion on whether
the financai statemets are presented fairly in all material respects and that there are prepared in
accordance with the applicabale financial rules
[19:17:27] ratna1238: {marwil47} yes
[19:17:30] ratna1238: marvelous
[19:17:32] ratna1238: STOP
[19:17:33] ratna1238: stop
[19:17:33] Haroon Khan: :cry:would nt u stop ,,,,,,,or i will cry
[19:17:34] ratna1238: stop
[19:17:35] faizanahmed112002: yes marwi
[19:17:39] ratna1238: lol
[19:17:47] azhar: :d
[19:17:54] ratna1238: ok
[19:17:56] azhar: so many different ideas:D
[19:18:04] Haroon Khan: plz make the............room for study
[19:18:08] ratna1238: ok
[19:18:22] ratna1238: Financial Statements. What are they??
[19:18:40] Sosh2: SOFP,SCI.SOCIE, Cash Flow and notes
[19:18:43] Knife: hu?
[19:18:48] Haroon Khan: {Sosh2} right
[19:18:50] nadii: income statement.balance sheet.owners equity and cashflow
[19:18:52] azhar: FS= profit and loss acc, cash flow statement and balance sheet
[19:18:59] Haroon Khan: {nadii} right
[19:19:13] gutsychyk: Are formal records of financial activities of a business. they provide an overview
of a business or person's financial condition in both short and long term. All the relevant financial
information of a business enterprise, presented in a structured manner and in a form easy to
understand, are cal
[19:19:16] ElenaRu: SFP
[19:19:17] azhar: which shows the health and growth of the company
[19:19:23] nono: blance sheet incm st cash flow
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24
[19:19:38] ElenaRu: SCI
[19:19:43] Sosh2: Statement of Financial Position (SOFP), Statement of Comprehensive Income (SCI),
Statement of Changes in Equiy (SOCIE)
[19:19:48] Haroon Khan: {gutsychyk} ,well enough
[19:20:07] gutsychyk: :%%:
[19:20:17] ElenaRu: SCF
[19:20:24] ratna1238: ok
[19:20:26] ratna1238: done??
[19:20:30] gutsychyk: yes
[19:20:31] Sosh2: yes
[19:20:37] ElenaRu: notes (disclosure)
[19:20:37] nono: why we need audit
[19:20:53] Sosh2: {ElenaRu} yes
[19:20:56] ratna1238: {nono} {nono} it was discussed a long long time ago
[19:21:05] ratna1238: ok
[19:21:07] ratna1238: next??
[19:21:11] nono: oh
[19:21:13] Sosh2: plz
[19:21:17] Haroon Khan: yeah
[19:21:18] ratna1238: what does True and Fair mean?
[19:21:31] Sosh2: true - accurate within reason
[19:21:48] kemikings: free from bias
[19:21:58] Sosh2: fair - presented in a way that does not distort the financial position
[19:21:59] ElenaRu: true - free from material misstatements (I need to check)
[19:22:10] ElenaRu: wait
[19:22:12] Knife: A materially accurate veiw of the FS
[19:22:14] Haroon Khan: that f/s r free from material misstatment,,and a/c are prepared according
ifrs
[19:22:25] ratna1238: {Haroon Khan} not quite
[19:22:25] azhar: :)
[19:22:28] Sosh2: {ElenaRu} yes accuate within reason
[19:22:34] ratna1238: {Sosh2} yes
[19:22:55] ratna1238: True = not factually incorrect
[19:23:00] ratna1238: funny right??
[19:23:07] mandy87: true- accurately extracted as well as prepared and fair free from bias and
discrimination
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25
[19:23:10] ratna1238: not incorrect lmao
[19:23:12] Sosh2: :)
[19:23:22] ratna1238: FAIR?
[19:23:26] Haroon Khan: am i wrong
[19:23:29] Haroon Khan: {ratna1238} ..
[19:23:40] ratna1238: {Haroon Khan} not wrong but not correct
[19:23:42] ratna1238: ;)
[19:23:49] Knife: am i incorrect
[19:23:49] ratna1238: nothing to do with materiality
[19:24:05] Knife: ohh ok
[19:24:06] azhar: materiality= the omission or misstatements which may influence the decision of the
user of the FSs
[19:24:09] Haroon Khan: okkk ,,,,,,,,,,,,,,,,,,,fine...........
[19:24:16] ratna1238: {azhar} that is right
[19:24:28] ratna1238: ok ppl wot does FAIR mean??
[19:24:29] kemikings: contents of auditors' report?
[19:24:42] mandy87: free from bias and discrimination
[19:24:45] ratna1238: {kemikings} case closed for TRUE, now FAIR
[19:24:58] ratna1238: {mandy87} yes
[19:25:03] azhar: fair = free from any doubt, a clear picture of FSs
[19:25:04] Haroon Khan: {ratna1238} sorrrry ,,,,,,,,,,,,,,,,don no
[19:25:20] Knife: can it really be free from doubt?
[19:25:24] marwil47: true meaning not factually incorrect and fair meaning distinct and plain and/or
unbiased
[19:25:30] Sosh2: Fair - where figures are presented in a way that does not distort the financial
position
[19:25:45] ratna1238: Fair : clear, distinct and plain and on the other impartial/ unbiased, just and
quitable
[19:25:48] Sosh2: Clear to all
[19:26:01] azhar: i was right:)
[19:26:02] ElenaRu: {ratna1238} give us definbition from the book fro true, fair pls
[19:26:13] ratna1238: {ElenaRu} I have
[19:26:22] ratna1238: ratna1238: Fair : clear, distinct and plain and on the other impartial/ unbiased,
just
and quitable
[19:26:33] ratna1238: ratna1238: True = not factually incorrect
[19:26:42] ratna1238: moving on??
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26
[19:26:45] ratna1238: one last q
[19:26:47] Sosh2: ok
[19:26:50] ratna1238: Materiality
[19:27:17] Knife: azhar: materiality= the omission or misstatements which may influence the decision
of the user of the FSs\
[19:27:21] ratna1238: yes
[19:27:23] Knife: he he he
[19:27:25] ratna1238: good
[19:27:35] Knife: thanks azhar
[19:27:39] Haroon Khan: {Knife} ,,,,,,,,,,,,,,,,,,,fast and feuros.............
[19:27:45] ratna1238: everybody happy with the session??
[19:27:49] mandy87: yes
[19:27:50] Haroon Khan: typin and coping.............lol
[19:27:55] Knife: so far so good
[19:27:56] ElenaRu: {ratna1238} YES
[19:27:58] nadii: any items thats absence or presence can have an impact on the financial
statements of the organisation or all those items whos presence or absense can influence the
decision of the users are known as material items,.
[19:27:58] marwil47: yes very much so
[19:28:07] mandy87: wanted to ask abt
[19:28:08] Knife: i only wish i could do that in exam
[19:28:09] Haroon Khan: {nadii} .......tooooooooooo late
[19:28:13] nadii: yes
[19:28:16] Sosh2: {ratna1238} yes but I think a lot of it has to do with preparation material that you
sent out earlier
[19:28:29] mandy87: the new course notes
[19:28:36] ratna1238: {Sosh2} yes and u guys came prepared as well
[19:28:36] mandy87: f8 2010
[19:28:40] Sosh2: we all sem fairly prepared and active this makes a big difference
[19:28:46] azhar: materiality = the omission or misstatements which may influence the decision of the
users of FSs
[19:28:47] ratna1238: now.. lets discuss something ppl
[19:28:54] kemikings: I mean, what are the contents of auditros' report?
[19:29:01] marwil47: yes, lets discuss
[19:29:06] ElenaRu: the main difficullty of F8- is to translate correctly the task =)
[19:29:14] ratna1238: the exam will not be about this definition as such
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27
[19:29:18] ratna1238: it will be practical stuff
[19:29:27] Knife: ok...
[19:29:27] ElenaRu: {ratna1238} both
[19:29:32] azhar: hmm
[19:29:33] ratna1238: so we need to do this type of q then go to past exam q as well
[19:29:40] ratna1238: {ElenaRu} yes
[19:29:46] Haroon Khan: {ratna1238} but inf8 ..the examiner requires ..........RATTTA
[19:29:56] ratna1238: we need 2 sessions in a week, do u agree?
[19:29:57] mandy87: ?
[19:29:57] azhar: :o
[19:30:00] mandy87: yes
[19:30:05] ElenaRu: only for F7
[19:30:06] Sosh2: yes
[19:30:07] Haroon Khan: YWEAH
[19:30:07] mandy87: was thinkin the same thin
[19:30:13] ElenaRu: and better - in the evening (after job)
[19:30:21] Knife: sure but the timemay be an issue for me
[19:30:23] Sosh2: {ElenaRu} defintiely
[19:30:27] ratna1238: http://www.opentuition.com/forum/viewtopic.php?f=40&t=7086
[19:30:34] ratna1238: That is the timing poll
[19:30:38] ratna1238: please fill in
[19:30:42] Sosh2: ok
[19:30:44] ratna1238: I will not be there on the week day
[19:30:53] ratna1238: BUT.. I need volunteerer to do the session
[19:30:58] marwil47: {ratna1238} agreed i find that selecting past paper questions are always good
[19:30:59] ElenaRu: yes, but on Thursday for F7 time there - is too early
[19:31:01] ratna1238: who can and want to volunteer??
[19:31:28] azhar: am going to conduct next session:)
[19:31:34] azhar: on 28 feb
[19:31:36] ratna1238: without the volunteerer to lead the week day session, we cannot do the session
[19:31:41] Sosh2: I will struggle with any day time session as I work and do not get in till after7pm UK
time
[19:31:41] ElenaRu: I can prepare any theme - but not earlier then end of March
[19:31:51] Haroon Khan: i will help out azhar
[19:31:57] ratna1238: {Haroon Khan} kewl...
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28
[19:32:01] ratna1238: {Haroon Khan} email me
[19:32:18] ElenaRu: {Sosh2} me too
[19:32:20] Sosh2: {azhar} {Haroon Khan} thanks I will pick up chat history induring the day
[19:32:21] kemikings: I can also help
[19:32:26] Haroon Khan: {ratna1238} right
[19:32:27] ratna1238: azhar will be helping me doing the weekends
[19:32:28] Knife: Congrats {Haroon Kahn}
[19:32:37] ratna1238: {Knife} do u want to volunteer?
[19:32:50] marwil47: weekdays are no good for me as i work and wont be able to do this at work
[19:32:51] ratna1238: it is very beneficial for your exam prep
[19:32:57] Knife: timinig is an issue for me on the weekdays
[19:33:00] ratna1238: becuz you will be very prepared for the session
[19:33:06] ratna1238: and u study harder than other ppl
[19:33:07] ratna1238: ;)
[19:33:20] ratna1238: hm..
[19:33:22] nadii: ill participate =P