Audit Procedures

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Can anyone help me in the following:.

1. Outline tests that an auditor can carry out to confirm existence, ownership, valuation and completeness of liabilities.

2. Examples which may cause the following modified audit reports to be arrived at:
A. "except for" caused by disagreement
B. adverse opinion

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Audit Procedures

    1. If you consider what a liability might be, lateral thinking will take you to the relevant evidence.

    A creditor would be supported by supplier statement, invoice, proof of delivery & purchase order etc.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Audit Procedures

    Qualified reports "Except for" are issued where the Auditor disagrees with a certain accounting treatment. An example of this would be where an entity is required to produce a cash flow statement in accordance with IAS 7 or FRS 1 but does not do so or where the auditor concludes a bad debt is to be written off, but the directors refuse.

    Adverse reports are issued where the financial statements contain an error or ommission so material that the financial statements are misleading therefore the true and fair view being departed from.

    Regards
    Steve

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