Section B

Question 1
What did you already know? What concepts / theories were new to you? What was
interesting? What was difficult to understand? (maximum 150 words) 10 marks
What did I already know is that audit evidence is very important in proving the
financial statements is true and fair and the possibility of absence of fraud. What is new to me
is that there are many analytical procedures and there is each ISA that have to abide to, for
example, ISA 520 for substantive procedure. Besides, what was interesting to me is when it
comes to audit evidence, external evidence is better than the entity's records. For example,
looking at a bank statement or a bank certificate is very good evidence about how much cash
was in the bank account at a particular date, as previously I thought that internal evidence is
more reliable before learning this topic. What was difficult to understand are the assertions
because certain assertions only applied in certain situation only, for example, occurrence and
cut-off relate only to transactions and events.
Why is it important for you to be able to achieve the CLO? What are you better able to do
now or know better, after you have gone through the topics for this CLO? (maximum 150
words) 10 marks
It is important for me to be able to achieve the CLO because audit evidence and audit
procedures are one of the most important elements for auditing. Besides, it is important to
know that it is not only important to find evidence, but we have to make sure that we find
sufficient and appropriate evidence. Sufficient concerns the quantity of audit evidence.
Appropriate concerns the quality of audit evidence which is its relevance and reliability. After
I have gone through the topics for this CLO, I know that analytical procedures are very
important in the planning stage for the auditor to assess the company before taking up the job
of auditing the company. For example, if the receivables balance changes dramatically from
one year to the next, but sales hadn’t really changed, the auditors might begin to question the
recoverability of those balances.
Which aspect do you think is something that you can best apply in your daily life OR in
future when you go out to work? Explain how you can apply that concept / theory.
(maximum 300 words) 10 marks
The aspect that I think I can best apply in the future when I go out t work is to be
professional scepticism to the audit evidence that is provided to me, and I should not feel shy
to request and obtain a any audit evidence that I feel that is needed for my auditing works on
the company I am auditing. Besides, I would always remind myself, as an auditor, I should
always perform my job based on the assertions I have learn from these topics. For example,
when I am auditing Airasia, an airline company, I should make sure that I confirm the
existence of the inventories, which are the aircrafts, by visiting the airport and do counting on
my own. Besides, after going through this CLO, I understand that company would usually
tend to over-state their assets and understate their liabilities. Thus, when I work as an auditor
in the future, to ensure that the liability is not being understated, I shall use external
confirmation procedures to obtain audit evidence. This involves asking customers to respond
directly to the auditor to confirm what they owe. This provides good evidence about the
existence of a receivable and its accuracy. By doing all this confirmation, I shall ensure that
the financial statements that I am auditing are true and fair. After going through this CLO, I
understand that auditing is a heavy work and it requires a lot of works to be done by auditor,
thus, to speed up my work without decrease the quality of my work, I shall apply my
knowledge about audit sampling in this CLO by doing reasonable audit sampling test and
ensure that my work can be done on time.

Section B
Question 2
What did you already know? What concepts / theories were new to you? What was
interesting? What was difficult to understand? (maximum 150 words) 10 marks
What did I already know is that the work of an auditor is to review the financial
statements of a company and produce a report to the user of financial statement about the
auditors’ opinion. What is new to me is that in there is a format for writing audit report and
the opinion of the auditors have a great impact on the company as the audience are usually
investors and stakeholders. What was difficult to understand is the unqualified opinion and
qualified opinion. I was confused by the wording, but after the explanation by my lecturer, I
understood that unqualified opinion was derived from the word unmodified report, thus it is
under qualified status, and meanwhile for qualified opinion, it was derived by the word
modified report, thus it is under unqualified status.

Why is it important for you to be able to achieve the CLO? What are you better able to do
now or know better, after you have gone through the topics for this CLO? (maximum 150
words) 10 marks
It is important for me to achieve this CLO because auditors report is important
because for some users of financial statements, the auditor's report is the only purpose of an
audit and it’s one of the few parts of an annual report containing the financial statements they
really look at. What I able to do now is the ability to evaluate the something based on the
evidence that I obtained. After going through this CLO, I can tell whether a company is a
going concern by reviewing the financial statement and audit report of the company. This is
because in the it is concluded in the auditors report on the appropriateness of management’s
use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the company’s ability to continue as a going concern.

Which aspect do you think is something that you can best apply in your daily life OR in
future when you go out to work? Explain how you can apply that concept / theory.
(maximum 300 words) 10 marks
The aspect that I think I can best apply in the future when I go out to work is the
aspect of true and fair view. As an auditor, I shall always remind myself about the work
ethics that I should always abide to. The word ‘true’ means that the information is factually
correct and not materially misstated, thus I shall not give bias opinion about the company and
resist myself from bribe and give my opinion according to the evidence. Besides, in the
aspect of going concern, I shall be as truthful as possible in giving my opinion to prevent the
users of the financial statements to be deceived. I shall keep an eye when the company is
operating in a negative cashflow status, or the company is not following the latest
technologies trend. Besides, to avoid misunderstandings arising from audit reports, auditing
standards have adopted a standard form and wording of audit report. The audit report is
important because banks, creditors, and regulators require an audit of a company's financial
statements. Besides, I shall apply the aspect of considerations in forming an opinion in my
audits report. The sufficient appropriate evidence, disclosure of significant accounting
policies should be in consideration.