4. Evidence + Reporting

Question 1

Types of tests

Answer 1

Tests of control

Substantive procedures: tests of detail + substantive analytical procedures

Question 2

Evidence gathering procedures

Answer 2

Analytical 
Enquiry (mgmt)
Inspection
Observation 
Understanding the entity

Question 3

P+L assertions

Answer 3

Completeness (understatement)
Occurrence (overstatement)
Cut-off - recorded in the correct period
Classification - ie CapX vs RevX
A

Question 4

SFP assertions

Answer 4

Completeness (understatement)
Rights + obligations (overstatement)
Allocation/classification
Valuation (included at appropriate amounts)
E

Question 5

Reasonable assurance

Answer 5

High level of assurance Positive opinion: true + fair

More detailed testing: A E I O U

Question 6

Limited assurance

Answer 6

Low level of assurance
Negative opinion: nothing has come to our attention

Less work: A E

Question 7

Unqualified opinion

Answer 7

T + F

Question 8

What is T + F?

Answer 8

• FS properly prepared in accordance w/ CA2006
• FS properly prepared in accordance w/ relevant financial reporting framework (IFRS or GAAP)
• Information in the directors report is consistent w/ the FS

Question 9

Reporting explicitly:

Answer 9

• FS been properly prepared in accordance w/ CA2006
• FS been properly prepared in accordance w/ relevant financial reporting framework ie. IFRS, GAAP
• Info in the director’s report is consistent w/ the FS

Question 10

Reporting by exception:

Answer 10

R A P I D

Returns

Agreement w/ accounting records and returns

Proper/adequate accounting records have been kept

Info received (all)

Disclosure of all details on directors’ emoluments/benefits