Scribd Logo
Upload

Welcome to Scribd!

  • Audit and Assurance Sample SolutionsV1.1

    Uploaded by

    Arthur Asiimwe
    3 views10 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    3 views10 pages

    Audit and Assurance Sample SolutionsV1.1

    Uploaded by

    Arthur Asiimwe

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 10
    26 Zed Workbook references. Chapters |, 2, 6, 7 and 8. Top tips. This was o typical question tho! should not have contained too many nasty surprises. Port (a) asked you to evaluate audit risks, which is entirely to be expected in AAA. Most ofthe issues here should have been straightforward, These was an cuit risk in relotion to fraud, bul this wos ever so slightly tricky because it was presented in the ‘internal audit! port ofthe scenario, Alihough the examining team does generally ry to help you with the way questions are set aut, you do need to keep your wits cbout you {ike here} The folowing hopefully won't apply to mony BPP students, but just in case: please do not write treatises on the audit risk model; we oll know thot i's made up of control risk, detection risk and | inherent risk There are no marks for this ~ the whole point of AAA is to apply your knowledge, not jus to stote it. (There are also unlikely to be any motks for cotegorising the risks you identify.) Also do rot discuss business risks unless they're relevant fo the question, W's crucial that you caleulate materiality for each risk thot you discuss. Ths should be in the form of o % of the relevant benchmark, eg 'he payment of $17.8m is 3% of totol assets, and is imoterial’. These are really eosy marks, and don't ike you long to cokulate orto write ‘Moke sure you ty for he professional marks os wall - introduction, conclusion, subheadings ond clear language will get you most of them Part |) was on ethical maters in relation to 0 different company, and par {li} should have been © rotmal question. Port (dj) wos perhaps the moet difficult port of the whole question, so if you struggled here then review the answer carefully. Easy marks. The professional morks and the materiality morks are easy. The materiality marks in particular are often the difference between passing and failing the question - many good candidates don't score wall because even though they aced the rest of the question, they didn’t get these easy marks. Iris important, of course that you select the most appropriate benchmark, and use the correct figures! ACCA examining team's comments. This question followed the pattern of previous | examinations and was set a the planning stage of the audit/assurance cycle. The content of the {question was o large company looking to expand is international presence through dliferent means Port fal was 0 standard audit risk requirement and should have been cn area where candidates were able to scare sang marks for identifying audit risks from the seenario and describing the effects on the financial satoments and elements of cud rik, This part of he queslion wos disappointingly conswered by many candidates. There is a tendency for weaker candidates to produce ong but irrelevant answers. There is no place in this requirement for describing the audit risk model or discussing ethical issues. Inthis scenario the cllent was nol @ new cen! and had preexisting international revenue seams

    You might also like