Piotr Pyziak, Consultant, CFRR
|
|
- Gladys Stevens
- 5 years ago
- Views:
Transcription
1 Piotr Pyziak, Consultant, CFRR 16 March 2017, Vienna Audit Training of Trainers Road to Europe: Program of Accounting Reform and Institutional Strengthening EU-REPARIS is funded by the European Union and is a part of WB EDIF.
2 »Discuss substantive testing objectives for selected accounts»engage in a group exercise based on the scenario of the simulated audit client case PejaSko to design substantive tests for:» Property, Plant and Equipment» Receivables» Cash and Bank» Revenues» Cost of Sales 2
3 » Substantive procedure (ISA 330) An audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise:» (i) Tests of details (of classes of transactions, account balances, and disclosures); and» (ii) Substantive analytical procedures.» Substantive testing is used by auditors to obtain audit evidence. 3
4 Analytical procedures Test of detail (balances & transactions) 4
5 » Key areas when testing tangible non-current assets:» Confirmation of ownership,» Inspection of non-current assets,» Valuation by third parties,» Adequacy of depreciation rates,» Potential impairment. Financial statement assertion Existence and occurrence Completeness Rights and obligations Accuracy, classification and valuation Assertions relating to presentation and disclosure Audit objective Additions represent assets acquired in the year and disposal represent assets sold or scrapped in the year Recorded assets represent those in use at the year-end All additions and disposals that occurred in the year have been recorded All assets in use at the year-end are included in balances The entity has rights to the assets purchased and those recorded at the year-end Non-current assets are correctly stated at cost less accumulated depreciation Additions and disposals are correctly recorded Review any impairment indicators, test or impairment Disclosures relating to cost, additions and disposals, depreciation policies, useful lives and assets held under finance leases are adequate and in accordance with accounting standards 5
6 » Completeness & existence Physical verification» Valuation» Verify valuation to valuation report and consider reasonableness» Evaluate depreciation rates (in terms of lives of assets, residual amounts, gains/losses on disposal, consistency in accounting policies, replacement policy)» Compare ratios of depreciation to non-current assets» Review capitalisation of expenses for additions» Review labour, material and overhead costs for self-constructed assets, search for any profit element, review capitalisation of finance costs. 6
7 » Rights and obligations» Verify title to land and buildings by inspection of title deeds or registry certificates, and give special consideration to leases agreements.» Inspect registration documents for vehicles» Classification and understandability» Review disclosures to ensure they meet IFRS for SMEs requirements» Contractual commitments, restrictions on title, temporary idle, fully depreciated but still in use 7
8 »Potential issues for PejaSko:» Physical existence and counting of live stock» Depreciation rate estimates» Low valuation of land and buildings 8
9 » Key areas when testing inventories:» Cut-off,» Inspection of inventories,» Valuation - obsolescence,» Adequacy of depreciation rates. Financial statement assertion Existence and occurrence Completeness Rights and obligations Valuation Presentation and disclosure Audit objective Recorded inventory exists at the year-end All inventory is included in the balance at the year-end The entity has rights to disclose the balances of inventory at the year-end Proper cut-off procedures are applied for disclosing the right balance Recorder value of inventories is fairly stated Disclosures relating to cost, valuation, including potential provision for obsolescence are adequate and in accordance with accounting standards 9
10 »Existence & Completeness»Physical verification participation at the year-end count of inventories»rights and obligations»apply cut-off procedures to verify ownership of inventories reconcile shipments to goods dispatch notes and sales invoices (Does inventory at year-end belong to PejaSko or clients?). 10
11 »Valuation»Review and assess reasonableness of valuation of inventories. Apply analytical procedures comparisons of value and quantity to prior periods. Include in the process review of provision for inventories.»review the cost elements of valuation allocated: labour, material and overhead costs or any other costs elements used in the process of valuation of inventories. 11
12 »Potential issues for PejaSko:» Physical existence and counting of inventory» Issue with proper valuation proper absorption of costs» Cut-off of inventories - returned inventory after year end» Provision for obsolete inventories - returned inventory after year end 12
13 » Key assertions related to audit of receivables:» existence,» completeness and» valuation» Tested in conjunction with sales where key assertions are:» occurrence,» completeness and» accuracy.» Combination of test of details and analytical procedures 13
14 » Completeness» Trace shipping documentation to invoice and to recorded sales in sales and receivables ledger.» Comparison of gross profit % with industry and prior years.» Existence» Circularisation and follow-up with supported explanations for differences or alternative procedures» Rights and obligations» Bank confirmations for any liens on receivables, inquiries to management, inspection of loan agreements, review of board minutes for evidence of possible factoring. 14
15 » Valuation and allocation» Compare aged analysis with prior year or industry, including bad debt expense% of sales and allowance as % of credit sales or receivables.» Confirm adequacy of allowance by reviewing correspondence with solicitors or customers» Discuss allowance % with management» Cut-off» Review material after year end credit notes and adjustments» Analytical procedure on sales returns.» Review before year end invoices and trace to documentation for dispatch. 15
16 »Presentation and disclosure:» Relating potential provision for doubtful/bad debt in accordance with accounting standards 16
17 »Potential issues for PejaSko:» Receivable for reimbursement from Insurance Claim» Distinction between receivables from big retail chains and small buyers what are the payment patterns?» Dependency on few major clients (going concern?)» The ageing of receivables potential cash flow issue?» Doubtful vs bad debt - the need for provision for receivables? 17
18 Financial statement assertion Existence Completeness Rights and obligations Valuation Assertions relating to presentation and disclosure (classification and understandability, occurrence and rights and obligations, accuracy and valuation, completeness) Audit objective Recorded cash balances exist at the period-end Recorded cash balances include the effects of all transactions that have occurred The entity has legal title to all cash balances shown at the period-end Recorded cash balances are realisable at the amounts stated Disclosures relating to cash are adequate and in accordance with accounting standards and legislation 18
19 » Bank balances» Key audit procedure for bank balances is confirmation (attention to cut-off issues).» Covering all assertions (existence, completeness, cut-off, valuation and allocation, rights and obligations).» Decide which bank balances to be confirmed, all of them usually.» Note details of accounts or leave blank.» Single confirmation requesting information on all loans and deposits including other important information regarding disclosures (i.e. guarantees, restrictions on bank accounts)» Review bank reconciliations if applicable (for cheques, transfers of cash with different value date).» Verify bank balances with standard bank statements 19
20 »Cash in Hand» Carefully audited if balances are material and susceptible to fraud (hotels, restaurants, retail organisations)» Auditors will be concerned that the cash exists, is complete, and belongs to the company (rights and obligations) and is stated at the correct value.» Plan for locations to attend the cash count at year end» Obtain all reports/certificates on cash counts and compare with accounting records» Follow-up on banked cash receipts and reconcile with bank statements after cut-off date 20
21 »Potential issues for PejaSko:» Dormant bank account» Lack of segregation of duties concerning cash payments» Chairmen travel costs 21
22 » The major issue is understatement of liabilities» Completeness» Test subsequent cash disbursements» Circularization (blank positive confirmation, small and zero balances sampled)» Test of unmatched purchase orders and suppliers invoices received for unrecorded liabilities» Disclosure checklists» Analytical procedures on payables turnover, payables days, sample supplier balances and compare to prior year data.» Rights and obligations» Vouch sample of balances to supporting documentation: invoices, receipt notes and purchase orders.» Valuation and allocation» Vouch sample of balances to supporting documentation: invoices, receipt notes and purchase orders.» Recalculate accruals. 22
23 » Cut-off» Test transactions around the year-end to determine whether amounts have been recognised in the correct financial period.» Perform analytical procedures on purchase returns, comparing the purchase returns as a % of sales or cost of sales to the previous year.» Classification and understandability» Review the trade accounts payables listing to identify any large debits» Read the disclosure notes relevant to liabilities in the draft financial statements 23
24 »Potential issues for PejaSko:» Payables relating to the personal trips of the owner» Timely payments of payables threatened by slow collection of receivabels cash flow issue and additional costs of external operational financing 24
25 Substantive tests Test the year-end cutoff of sales transactions verify the sales invoices from end of the audited year and begining of next year to shipping documents and terms of the contract. Test sale returns post year end verify goods received shipping documents and documents correcting sales, which were issued in the beginning of next year. Perform analytical procedures on revenue compare to prior years, compare month by month, investigate margins: monthly, by product, by client, etc. Audit objectives Cut-off, Completeness Occurrence Accuracy Review significant year-end sales contracts and discounts - inquire about and examine the volume based discounts granted to supermarkets. 25
26 Substantive tests Evaluate accounting estimates related to revenues Audit objectives Accuracy Investigate sale transactions with related parties Evaluate financial statement presentation and disclosure Cross reference confirmation tests from receivables section Presentation and disclosure Existence, occurrence, and rights, valuation 26
27 »Potential issues for PejaSko:» Revenues could be overstated before year end with corrections to sales in the next reporting period» Existence of volume based discounts and the proper reflection in FS 27
28 Substantive tests Test the year-end cutoff of purchase transactions (both goods and services) verify the purchase invoices from end of the audited year and begining of next year to relevant shipping documents and to revelant contract agreements, service orders or other documentation. Verify major purchases of services during the year to supporting documentation, including the contracts. Inquire the nature and relevance of these. Perform analytical procedures on cost of sales compare to prior years, compare month by month, investigate margins: monthly, by product, by client, etc. Investigate big and unusual items. Audit objectives Cut-off, Completeness Occurrence Accuracy 28
29 Substantive tests Evaluate accounting estimates related to cost of sales Audit objectives Accuracy Investigate purchase transactions from related parties Evaluate financial statement presentation and disclosure Cross reference confirmation tests from payables section Presentation and disclosure Existence, occurrence, and rights, valuation 29
30 »Potential issues for PejaSko:» Cost of sales could be understated cost transactions could be pushed to the next reporting period in order to improve the results of audited year.» The nature and amounts of private expenses of the owner needs to be investigated with detail (potential tax implications). 30
31 Substantive tests Review employment contracts with latest annexes. Verify amounts from the contracts to payroll list and payroll slips. Verify calculation of relevant social charges and taxes, reconcile to tax returns. Verify accounting entries and payments of payroll and relevant taxes and social charges to bank account. Audit objectives Occurrence, Accuracy, Completeness Occurrence, Accuracy Classification, Accuracy, Cut-off 31
32 Substantive tests Perform analytical procedures on payroll and related social charges and taxes compare to prior years, compare month by month, investigate margins: monthly, by product, by client, etc. Investigate bid and unusual items. Evaluate financial statement presentation and disclosure Audit objectives Accuracy Presentation and disclosure Cross reference confirmation tests from payables section and cost of sales Existence, occurrence, and rights, valuation 32
33 »Potential issues for PejaSko:» Cost of payroll and related taxes and social charges could be understated gray economy.» Payroll and related social charges and taxes could be wrongly calculated risk of tax control, possible penalties and interest. 33
34
35 »Use template 11 to perform design substantive tests based on the PejaSko Case study for:» Property, Plant and Equipment» Receivables» Cash and Bank» Revenues» Cost of Sales»Work in Groups for minutes»each Group will present the results 35
MODULE 5 AUDIT EXECUTION: FINANCIAL STATEMENT ITEMS SUBSTANTIVE PROCEDURES
MODULE 5 AUDIT EXECUTION: FINANCIAL STATEMENT ITEMS SUBSTANTIVE PROCEDURES OUTLINE Application of specific substantive procedures to test the following categories of assertions: -Assertions relating to
Chapter 10. Cash and Financial Investments. McGraw-Hill/Irwin. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 10 Cash and Financial Investments McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Sources and Nature of Cash Sources General checking account Payroll checking
Risk Assessment Proces Case study Slovenian Construction Company
Assessment Proces Case study Slovenian Construction Company Sabina Softic, Audit Director Deloitte Bosnia and Herzegovina Vienna, 6 February 2013 Assessment Procedures ISA 315: auditor should obtain an
ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS (Effective for reviews of financial statements for periods beginning on or after April 1, 2010)
SRE 2400* ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS (Effective for reviews of financial statements for periods beginning on or after April 1, 2010) Contents Paragraph(s) Introduction...1-2 Objective of
Fundamentals Level Skills Module, Paper F8. Section B
Answers Fundamentals Level Skills Module, Paper F8 Audit and Assurance March/June 2016 Sample Answers Section B 1 Corporate governance weaknesses and recommendations Weakness Recommendation The board is
INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400 ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS
INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400 (Previously ISA 910) ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS (Effective for reviews of financial statements for periods beginning on or after December
Chapter 9. #17 is a bad question if it is changed as follows the answer is d
Chapter 9 Multiple choice 1. a 2. d 3. b 4. d 5. b 6. b 7. d 8. c 9. b 10. b 11. b 12. c 13. d 14. b 15. b 16. c #17 is a bad question if it is changed as follows the answer is d 17. The audit of accounts
CPA P2 Audit Practice & Assurance Services TOPIC 49: SUBSTANTIVE AUDIT PROCEDURES
TOPIC 49: SUBSTANTIVE AUDIT PROCEDURES ( THE DESIGN AND CARRYING OUT OF TESTS OF SUBSTANCE ON SPECIFIC AUDIT AREAS ) 1 SUBSTANTIVE TESTING STATEMENT OF PROFIT OR LOSS Completeness all transactions and
Audit Evidence. What do mean by the Audit Evidence?
What do mean by the Audit Evidence? Audit Evidence Sri Lanka auditing Standard 500 provides the definition of the audit evidence as all the information used by auditors in arriving at the conclusions on
Auditing and Assurance Services, 15e
Auditing and Assurance Services, 15e (Arens) Chapter 14 Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions Learning Objective 14-1 1) Which of the following
Chapter 9 Auditor s Response to Assessed Risk (ISA 330, ISA 500)
Slide 9.1 Principles of Auditing: An Introduction to International Standards on Auditing Chapter 9 Auditor s Response to Assessed Risk (ISA 330, ISA 500) Rick Hayes, Hans Gortemaker and Philip Wallage
Chapter 10. Auditing the Revenue Process
Chapter 10 Auditing the Revenue Process Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LO# 1 Revenue
VIETNAMESE STANDARDS ON AUDITING
VIETNAMESE STANDARDS ON AUDITING -------------------------------------------------------------------------------------------------------- STANDARD 910 ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS (Issued
Chapter 10. Auditing the Revenue Process. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Chapter 10 Auditing the Revenue Process McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. LO# 1 Revenue Recognition Revenue is defined as inflows or other enhancements
McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 07 Revenue and Collection Cycle What at first was plunder assumed the softer name of revenue. Thomas Paine
Chapter 16 Completing the Tests in the Sales and Collection Cycle:
Chapter 16 Completing the Tests in the Sales and Collection Cycle: Accounts Receivable Describe the methodology for designing tests of details of balances using the audit risk model. Design and perform
File No: PERMANENT AUDIT FILE INDEX Annual update confirmation. Business details 1. Background to client
Client: Year/Period End: PERMANENT AUDIT FILE INDEX Annual update confirmation Business details 1. Background to client 2. Financial History 3. Register of laws and regulations 4. Related parties 5. Group
Professional Bridging Examination. Paper III PBE Auditing and Information Systems
Professional Bridging Examination Pilot Examination Paper Paper III PBE Auditing and Information Systems Questions & Answers Booklet The suggested answers given in this booklet are purposely made to give
McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Finance and Investment Cycle Learning Objectives 1. Describe the finance and investment cycle, including
5/03/15. Module 8: Revenue and collection cycle, and acquisition and expenditure cycle
Instructor Michael Brownlee B.Comm(Hons),CGA Module 8: Revenue and collection cycle, and acquisition and expenditure cycle 8.1 The balance sheet approach 8.2 Revenue and collection cycle The basics 8.3
Report on Inspection of RSM US LLP (Headquartered in Chicago, Illinois) Public Company Accounting Oversight Board
1666 K Street, N.W. Washington, DC 20006 Telephone: (202) 207-9100 Facsimile: (202) 862-8433 www.pcaobus.org Report on 2016 (Headquartered in Chicago, Illinois) Issued by the Public Company Accounting
SAMPLE AUDIT REPORT. Sample Credit Union. Report on Operations. As of Audit Date
Sample Credit Union Report on Operations As of Audit Date GENERAL OVERVIEW Overall, the Credit Union appeared to be well managed and continuing to maintain its financial stability. During the twelve months
Identifying Risk: Understanding the Entity and its Environment
CASE STUDY: PIZZA SHOP, INC. Identifying Risk: Understanding the Entity and its Environment Pizza Shop, Inc. (PSI or the Entity) owns and operates dine-in restaurants offering Italian cuisine. PSI was
ACCOUNTING 312 AUDITING
ACCOUNTING 312 AUDITING CONTENTS: Page 1: Page 4: Page 7: Page 16: Page 21: Week 1 Assurance and Auditing Overview Week 2 The Auditing Environment Week 3 Compliance Week 4 Risk Week 5 Internal Control
Fundamentals Level Skills Module, Paper F8 (SGP)
Answers Fundamentals Level Skills Module, Paper F8 (SGP) Audit and Assurance (Singapore) June 2013 Answers 1 (a) (i) Importance of reporting to those charged with governance In accordance with SSA 260
AUDITING PROFESSIONAL 1 EXAMINATION - APRIL 2018
AUDITING PROFESSIONAL 1 EXAMINATION - APRIL 2018 NOTES: Section A - You are required to answer Questions 1, 2 and 3. Section B - You are required to answer any one out of Questions 4 or 5. Should you provide
Chapter 14. Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment
Chapter 14 Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or
Solutions. I. Auditing Cash and Cash Equivalents. A. Learning Question Answers
Solutions I. Auditing Cash and Cash Equivalents A. Learning Question Answers 1. A is correct. As a result, cash and cash equivalents are typically shown in the same financial statement line item on the
Vudesk.com (chief)ismail shah SiLeNt Moon(Admin) ACC311- Fundamentals of Auditing (Session - 1)
Vudesk.com (chief)ismail shah (admin@vudesk.com) SiLeNt Moon(Admin) ACC311- Fundamentals of Auditing (Session - 1) Question No: 1 ( Marks: 1 ) - Please choose one When the cash sales should be recorded
Report on Inspection of Ernst & Young LLP (Headquartered in New York, New York) Public Company Accounting Oversight Board
666 K Street NW Washington, DC 20006 Office: (202) 207-900 Fax: (202) 862-8430 www.pcaobus.org Report on 206 (Headquartered in New York, New York) Issued by the Public Company Accounting Oversight Board
Applied Skills, AA. Section B
Answers Applied Skills, AA Audit and Assurance (AA) September/December 2018 Sample Answers Section B 16 (a) Analytical procedures Analytical procedures can be used at all stages of an audit, however, ISA
Campus Financial Sub-Certification - Explanation
Campus Financial Sub-Certification - Explanation 1. Within the areas for which I am responsible, all transactions, agreements and amounts have been properly reflected in the University s accounting records.
Audit Techniques, Audit Preparation and Audit Efficiencies for Small and
Audit Techniques, Audit Preparation and Audit Efficiencies for Small and M di Medium E Enterprises t i (SME (SMEs)) March 26 26, 2014 Although the presentation and related materials have been carefully
AMIT BACHHAWAT TRAINING FORUM VOUCHING EXTRA QUESTIONS
AMIT BACHHAWAT TRAINING FORUM VOUCHING EXTRA QUESTIONS Q. A trader is worried that in spite of substantial increase in sales compared to earlier year, there is considerable fall in Gross Profit after satisfying
CEBU CPAR CENTER. M a n d a u e C I t y
Page 1 of 8 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF RECEIVABLES PROBLEM NO. 1 In the audit of Beatles Company, the auditor had an appreciation of the following schedule and noted
CEBU CPAR CENTER. M a n d a u e C I t y
Page 1 of 11 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF LIABILITIES PROBLEM NO. 1 In the audit of the Heats Corporation s financial statements at December 31, 2005, the chief accountant
Fundamentals Level Skills Module, F8 (INT)
Answers Fundamentals Level Skills Module, F8 (INT) Audit and Assurance (International) June 2008 Answers 1 (a) Prior year internal control questionnaires Obtain the audit file from last year s audit. Ensure
FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT FOR THE YEAR ENDED DECEMBER 31, 2018
DOHA STATE OF QATAR FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT FOR THE YEAR ENDED DECEMBER 31, 2018 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT CONTENTS Page Independent auditor s
United Foods Company (PSC)
FINANCIAL STATEMENTS 31 DECEMBER 2017 DIRECTORS REPORT The Directors are pleased to present their report together with audited financial statements of United Foods Company (PSC) (the "Company") for the
DRAFT 11/07/2018. Cowboy Joe Club. Independent Accountant s Report on the Application of Agreed-upon Procedures. Year Ended June 30, 2018
Independent Accountant s Report on the Application of Agreed-upon Procedures June 30, 2018 Contents Independent Accountant s Report on the Application of Agreed-upon Procedures... 1 Additional Information...
ACCA F8. Provided by Academy of Professional Accounting (APA) Audit and Assurance (AA) 审计与鉴证业务第 7 讲 ACCA Lecturer: Andy Qu
Professional Accounting Education Provided by Academy of Professional Accounting (APA) ACCA F8 Audit and Assurance (AA) 审计与鉴证业务第 7 讲 ACCA Lecturer: Andy Qu ACCAspace 中国 ACCA 特许公认会计师教育平台 Copyright ACCAspace.com
Once goods are despatched they should be matched to sales orders and flagged as fulfilled.
Answers Fundamentals Level Skills Module, Paper F8 (INT) Audit and Assurance (International) June 2012 Answers 1 (a) Pear International s (Pear) internal control Deficiency Control Test of control Currently
SECTION A CASE QUESTIONS (Total: 50 marks)
SECTION A CASE QUESTIONS (Total: 50 marks) Answer 1(a) The risk of material misstatements relating to the accuracy assertion of interest income is high. The interest income increased significantly for
INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF THOMAS COOK GROUP PLC
INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF THOMAS COOK GROUP PLC REPORT ON THE Our opinion In our opinion: > Thomas Cook Group plc s Group financial statements and parent company financial statements
Strategic report. Corporate governance. Financial statements. Financial statements
Strategic report Corporate governance Financial statements 76 Statement of Directors responsibilities 77 Independent auditor s report to the members of Tesco PLC 85 Group income statement 86 Group statement
a) The elements required for establishing an auditor s liability for negligence to clients are:
SOLUTION SET 1 ANSWERS 1 Part A a) The elements required for establishing an auditor s liability for negligence to clients are: 1. The duty to conform to a required standard duty of care 2. Failure to
Report on Inspection of Grant Thornton LLP (Headquartered in Chicago, Illinois) Public Company Accounting Oversight Board
666 K Street, N.W. Washington, DC 20006 Telephone: (202) 207-900 Facsimile: (202) 862-8433 www.pcaobus.org Report on 205 (Headquartered in Chicago, Illinois) Issued by the Public Company Accounting Oversight
Independent auditor s report to the members of Tesco PLC
Independent auditor s report to the members of Tesco PLC Opinion on financial statements of Tesco PLC In our opinion: the financial statements give a true and fair view of the state of the Group s and
SU 2.1 Accounts Receivable
Part 1 Study Unit 2 SU 2.1 Accounts Receivable Overview Recording receivables, which coincides with revenue recognition, is consistent with the accrual method of accounting. Current Receivables will be
Powell River Regional District and Powell River Regional Hospital District Final Report to the Board of Directors
Powell River Regional District and Powell River Regional Hospital District Final Report to the Board of Directors May 8, 2015 May 8, 2015 Direct Line: 604-443-4735 E-mail: ksimpson@bdo.ca Board of Directors
26 PTA Audit. Overview. The Purpose of an Audit. Compiled Financial Statements
PTA Audit Overview Auditing involves examining financial records and transactions to ensure that receipts have been properly accounted for and expenditures have been properly authorized and recorded in
Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions
Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions Chapter 14 2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 5-5 Learning Objective
Chapter 23 Audit of Cash and Financial Instruments. Copyright 2014 Pearson Education
Chapter 23 Audit of Cash and Financial Instruments Identify the major types of cash and financial instruments accounts maintained by business entities. Show the relationship of cash in the bank to the
TERMS OF REFERENCE FOR PROJECT ANNUAL EXTERNAL AUDIT
TERMS OF REFERENCE FOR PROJECT ANNUAL EXTERNAL AUDIT I. INTRODUCTION Marie Stopes International Afghanistan, MSIA, wishes to engage the services of an audit firm, the Auditor, for the purpose of auditing
Statutory Auditor s Report
Statutory Auditor s Report To the General Meeting of Feintool International Holding AG, Lyss Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated financial
INTERNATIONAL STANDARD ON AUDITING 545 AUDITING FAIR VALUE MEASUREMENTS AND DISCLOSURES CONTENTS
INTERNATIONAL STANDARD ON AUDITING 545 AUDITING FAIR VALUE MEASUREMENTS AND DISCLOSURES (Effective for audits of financial statements for periods beginning on or after December 15, 2004) CONTENTS Paragraph
ACCA F8. Provided by Academy of Professional Accounting (APA) Liability, Capital and Directors Emoluments ACCA Lecturer: Tom Liu
Professional Accounting Education Provided by Academy of Professional Accounting (APA) ACCA F8 Liability, Capital and Directors Emoluments ACCA Lecturer: Tom Liu ACCAspace 中国 ACCA 特许公认会计师教育平台 Copyright
Closing the Books. 5th Edition. Steven M. Bragg
Closing the Books 5th Edition Steven M. Bragg Chapter 1 The General Ledger and Other Ledgers... 1 Learning Objectives... 1 Introduction... 1 The Ledger Concept... 1 General Ledger Overview... 2 The Accounts
Audit Program for Cash
Form AP 10 Index Reference Audit Program for Cash Legal Company Name Client: Balance Sheet Date: Instructions: The auditor should refer to the audit planning documentation to gain an understanding of the
Chapter 15. Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts
Chapter 15 Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction
Chapter 14. Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment
Chapter 14 Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
ADDITIONAL INFORMATION REQUIRED BY GOVERNMENT AUDITING STANDARDS
ADDITIONAL INFORMATION REQUIRED BY GOVERNMENT AUDITING STANDARDS 99 100 101 102 CITY OF GEORGETOWN, SOUTH CAROLINA Schedule of Findings and Questioned Costs For the Year Ended June 30, 2008 A. Summary
Closing the Books. An Accountant s Guide. Steven M. Bragg
Closing the Books An Accountant s Guide Steven M. Bragg Chapter 1 The General Ledger and Other Ledgers... 1 Learning Objectives... 1 Introduction... 1 The Ledger Concept... 1 General Ledger Overview...
VILLAGE OF ROME ADAMS COUNTY TABLE OF CONTENTS. Independent Auditor s Report... 1
VILLAGE OF ROME ADAMS COUNTY TABLE OF CONTENTS TITLE PAGE Independent Auditor s Report... 1 Combined Statement of Receipts, Disbursements, and Changes in Fund Balances (Cash Basis) - All Governmental Fund
City of Greater Sudbury
Audit Planning Report Year ended December 31, 2005 This audit plan is prepared for the year ending December 31, 2005 and is designed to provide an overview for Council of the of the audit procedures to
kpmg CAMBODIAN RURAL DEVELOPMENT TEAM ( CRDT ) Management Letter for the year ended 31 December 2015
CAMBODIAN RURAL DEVELOPMENT TEAM ( CRDT ) Contents Page 1. Develop a comparison between budget and actual expenses 1 2. Improve control over non-expandable equipment 2 3. Improve control over cost sharing
Compiled by: CA. Pankaj Garg Page 1
SA 500 Audit Evidence 1 Comment on the following: Z Ltd. had appointed an outside expert to assess accrued gratuity liability of the company. Based on the said report, the company provides Rs. 80 lakhs
INTERNATIONAL STANDARD ON AUDITING 550 RELATED PARTIES CONTENTS
INTERNATIONAL STANDARD ON AUDITING 550 RELATED PARTIES (Effective for audits of financial statements for periods beginning on or after December 15, 2004) CONTENTS Paragraph Introduction... 1-6 Existence
LOCAL CHURCH AUDIT GUIDE
LOCAL CHURCH AUDIT GUIDE Rev. Aug 2017 This booklet is given to you as a service of the Committee on Audit and Review of the General Council on Finance and Administration of The United Methodist Church
Content (Click to navigate)
Probe 2016.20.01 Content (Click to navigate) Probe 2016.20.01 1 Section A: Executive summary Probe MMX 6 Technical enhancements 6 Compliance Changes (major changes) 6 2.1 New and Revised Auditor Reporting
Cash and Financial Investments
CHAPTER 10 Cash and Financial Investments Review Questions 10 1 The following circumstances might cause a client to understate assets: (1) Management of a privately held company may be motivated to understate
ADVANCED AUDIT AND PROFESSIONAL ETHICS NOV 2011
SOLUTON 1 a) i. The auditor would assess the client s correct use of accounting concepts in the preparation of the financial statements to ensure that they give a true and fair view in the following manner:
Independent auditor s report to the members of Pennon Group plc
Pennon Group plc Annual Report 2017 Independent auditor s report to the members of Pennon Group plc Our opinion on the financial statements In our opinion: Pennon Group plc s Group financial statements
ANNUAL REPORT ON THE INTERIM INSPECTION PROGRAM RELATED TO AUDITS OF BROKERS AND DEALERS (PCAOB Release No August 20, 2018)
ANNUAL REPORT ON THE INTERIM INSPECTION PROGRAM RELATED TO AUDITS OF BROKERS AND DEALERS (PCAOB Release No. 2018-003 August 20, 2018) Table of Contents Background 1 Inspections of Firms During 2017 1 Independence
COWBOY JOE CLUB FINANCIAL REPORT JUNE 30, 2017
COWBOY JOE CLUB Report on the Application of Agreed-Upon Procedures to the Records of the University of Wyoming Cowboy Joe Club and to its System of Internal Accounting Control FINANCIAL REPORT JUNE 30,
ANNUAL FINANCIAL STATEMENTS - YEAR ENDED 30 JUNE 2018 CONTENTS
ANNUAL FINANCIAL STATEMENTS - YEAR ENDED 30 JUNE 2018 CONTENTS Directors Responsibility Statement 1 Independent Auditor s Report 2 Income Statement 8 Statement of Comprehensive Income 9 Statement of Changes
Conceptual Framework of Assurance II: Types of Assertions
Conceptual Framework of Assurance II: Types of Assertions Joshua Onome Imoniana September 8, 2014 Student s Key takeaway from this lecture include: What is an assertion? Useful steps to verify an assertion.
Financial statements. Contents. Financial statements. Company financial statements
Contents 93 Directors responsibilities statement 94 Independent auditor s report 99 Consolidated income statement 100 Consolidated statement of comprehensive income/(expense) 101 Consolidated balance sheet
Internal Audit Policy
Internal Audit Policy This policy was adopted by the Board of Directors of Armagh Credit Union Limited. Signed:- Position Position Date: Internal Audit Plan 1. Introduction The internal audit function
Chapter 05. Audit Evidence and Documentation. McGraw-Hill/Irwin. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 05 Audit Evidence and Documentation McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Audit Risk The possibility that the auditors may unknowingly fail to
REPORT OF INDEPENDENT AUDITORS AND SINGLE AUDIT REPORTS SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY
REPORT OF INDEPENDENT AUDITORS AND SINGLE AUDIT REPORTS SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY June 30, 2017 Table of Contents Report of Independent Auditors on the Financial Statements for the Year
FINANCIAL STATEMENTS 2018
FINANCIAL STATEMENTS 2018 CONTENTS 2 Auditor s Report 7 Directors Responsibility Statement 8 Statement of Comprehensive Income 9 Statement of Financial Position 10 Statement of Changes in Equity 11 Statement
REVIEW OF AMG s QUARTERLY FINANCAL STATEMENTS: A SHORT CASE ABOUT AUDITOR RESPONSIBILITIES AND REQUIREMENTS
REVIEW OF AMG s QUARTERLY FINANCAL STATEMENTS: A SHORT CASE ABOUT AUDITOR RESPONSIBILITIES AND REQUIREMENTS Kathleen A Simione, Quinnipiac University Aamer Sheikh, Quinnipiac University INSTRUCTORS NOTES
United States Department of the Interior
United States Department of the Interior Office of Inspector General Washington, D.C. 20240 C-IN-BOR-0094-2002 February 21, 2003 Memorandum To: From: Subject: Commissioner, Bureau of Reclamation Roger
Tutorial Letter 201/1/2015
/2015 Tutorial Letter 201/1/2015 THE INTERNAL AUDIT PROCESS: TEST OF CONTROLS AUI3702 Semester 1 Department of Auditing This tutorial letter contains important information about your module. Bar code CONTENTS
APPENDIX D Examples of Significant Deficiencies and Material Weaknesses
Page A 136 Standard APPENDIX D Examples of Significant Deficiencies and Material Weaknesses D1. Paragraph 8 of this standard defines a control deficiency. Paragraphs 9 and 10 go on to define a significant
Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level
*5783442697* Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level ACCOUNTING 9706/11 Paper 1 Multiple Choice May/June 2017 Additional Materials: Multiple
Audit certificate template for Horizon2020 projects funded by SERI
Audit certificate template for Horizon2020 projects funded by SERI Under Article 4.1 of the subsidy agreement concluded between SERI and the Swiss research institution (hereinafter referred to as beneficiary),
Verification of Assets and Liabilities
6 Verification of Assets and Liabilities Verification BASIC CONCEPTS Verification is a process to verify the ownership, valuation, possession and existence of a particular Asset or liability. Verification
Closing the Books. 4th Edition. Steven M. Bragg
Closing the Books 4th Edition Steven M. Bragg Chapter 1 The General Ledger and Other Ledgers... 1 Learning Objectives... 1 Introduction... 1 The Ledger Concept... 1 General Ledger Overview... 2 The Accounts
A n n u a l f i n a n c i a l r e s u l t s
A n n u a l f i n a n c i a l r e s u l t s DIRECTORS STATEMENT The directors of Air New Zealand Limited are pleased to present to shareholders the Annual Report* and financial statements for Air New
Asset Misappropriation. Peter N. Munachewa, CICA, CFIP, CFE
Asset Misappropriation Peter N. Munachewa, CICA, CFIP, CFE CORPORATE FRAUD AND ABUSE CLASSIFICATION SYSTEM Corruption Asset Misappropriation Fraudulent Statements Conflicts of Interest Purchasing Schemes
Introduction to Fraud in Cash Collections and Disbursements
Introduction to Fraud in Cash Collections and Disbursements #6180C COURSE MATERIAL TABLE OF CONTENTS Chapter 1: Cash Collections and Receivables 1 Revenue and Collection Cycle: Typical Activities 1 Audit
ICAN ADVANCED AUDIT AND ASSURANCE MOCK EXAM SOLUTION SOLUTIONS TO SECTION A
ICAN ADVANCED AUDIT AND ASSURANCE MOCK EXAM SOLUTION PART I MULTIPLE-CHOICE QUESTIONS 1.E 2.E 3.D 4.B 5.B 6.D 7.D 8.D 9.C 10.D 11.C 12.C 13.E 14.B 15.B 16.C 17.B SOLUTIONS TO SECTION A STARRY GOLD ACADEMY
IAASB CAG REFERENCE PAPER IAASB CAG Agenda (December 2005) Agenda Item I.2 Accounting Estimates October 2005 IAASB Agenda Item 2-B
PROPOSED INTERNATIONAL STANDARD ON AUDITING 540 (REVISED) (Clean) AUDITING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES (OTHER THAN THOSE INVOLVING FAIR VALUE MEASUREMENTS AND DISCLOSURES) (Effective for
STANDARD STATEMENT OF WORK FOR FINANCIAL AUDITS OF NON-U.S. ORGANIZATIONS CONTRACTED BY THE RECIPIENT
STANDARD STATEMENT OF WORK FOR FINANCIAL AUDITS OF NON-U.S. ORGANIZATIONS CONTRACTED BY THE RECIPIENT OBJECTIVES AND GENERAL STATEMENT OF WORK AUDIT OF USAID RESOURCES MANAGED BY Dairy & Rural Development
SUGGESTED SOLUTION INTERMEDIATE N 18 EXAM. Test Code CIN 5020
SUGGESTED SOLUTION INTERMEDIATE N 18 EXAM SUBJECT- AUDIT Test Code CIN 5020 (Date :09.09.2018) Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666 1 P
By CA Prasad K. Dharap M. Com, M. Phil,F.C.A, DISA (ICAI)
By CA Prasad K. Dharap M. Com, M. Phil,F.C.A, DISA (ICAI) 1 Introduced way back in 1992 after Harshad Mehta Scam Exposure above 5 cr or in some cases above 1 cr are covered. Specialized type of audit The
POHNPEI FISHERIES CORPORATION FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT
FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT YEARS ENDED SEPTEMBER 30, 2000, 1999 AND 1998 Deloitte & Touche LLP 361 South Marine Drive Tamuning, Guam 96913-3911 Tel: (671)646-3884 Fax: (671)649-4932
Accounting Building Business Skills. Learning Objectives. Learning Objectives. Paul D. Kimmel. Chapter Seven: Internal Control, Cash and Receivables
Accounting Building Business Skills Paul D. Kimmel Chapter Seven: Internal Control, Cash and Receivables PowerPoint presentation by Christine Langridge Swinburne University of Technology, Lilydale 2003