Audit Sim

sainty

can anyone tell me if it is necessary to quote ISA's when answering the Sim questions. our tutor has not really focused on this part of the simulation.

Steve Collings

Wherever possible I would always try to bring in an ISA to illustrate your answer as it demonstrates your technical knowledge. You could also bring in relevant IFRS/IAS if you can remember them, such as when auditing non-current assets do the recognition and measurement critieria conform to IAS 16.

Best wishes
Steve

sainty

thanks for your help, to be honest i don't know if i will be able to quote the standards as i am finding it difficult enough trying to grasp a knowlege of all the other areas of audit which i need to learn, such as Purchases, Sales, Payroll and Stock etc.

ema192

Hello sorry am late replying to your message

These are a few of the things that came up in my sim a few weeks back hope it helps,

ISA 260 Communication of audit matters came up in my simulation, Intention and POssible Content.
.

Confidentuality question ,basics really

Audit of Debtors table recognise any mistakes check payments again invoices etc
format of Objective, work done, results, conclusion.

Basic methods of Sales and Purchases checking/procedures.

Identify 2 Weaknesses in a control system i.e seasonal turnover, married couple managers, no stock levels, one person for variety of jobs.

Risks of a company i,e food & hygiene, stock, high staff turnover, cash transactions, payments, nature of business, going concern, health and safety, involvelement of directors.

Three possible samping methods:
Random, Systematic, Selective, Hap Hazard, Block selection.
A explanation was required aswell.

Balance Sheet Review task, has common practice really look at depreciation on assets, check for increase on f.assets, where has extra cash come from? Have debtots increased? where is credit control? Have creditors reduced did we pay them early? get discount?


Hope this will help a little, Its all pretty common sense really just think the worst that could happen in this situ for a few hours and you'll be fine.

I will now get on with my unit 10 arrgggghhh just cant seem to get it finished!!!


Good luck

Emma