4. Evidence + Reporting Flashcards
1
Q
Types of tests
A
Tests of control
Substantive procedures: tests of detail + substantive analytical procedures
2
Q
Evidence gathering procedures
A
Analytical Enquiry (mgmt) Inspection Observation Understanding the entity
3
Q
P+L assertions
A
Completeness (understatement) Occurrence (overstatement) Cut-off - recorded in the correct period Classification - ie CapX vs RevX A
4
Q
SFP assertions
A
Completeness (understatement) Rights + obligations (overstatement) Allocation/classification Valuation (included at appropriate amounts) E
5
Q
Reasonable assurance
A
High level of assurance Positive opinion: true + fair
More detailed testing: A E I O U
6
Q
Limited assurance
A
Low level of assurance
Negative opinion: nothing has come to our attention
Less work: A E
7
Q
Unqualified opinion
A
T + F
8
Q
What is T + F?
A
- 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
9
Q
Reporting explicitly:
A
- 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
10
Q
Reporting by exception:
A
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
