A1b. Key bodies involved in Regulations

Question 1

Financial Reporting : LLP
how often?
what regulations?

Answer 1

Annually

Follow Local Law, IAS, IFRS

Question 2

A/C Stds - IASC to IASB

Answer 2

IASC > IAS (-2000)
IASB > IFRS (2001- present)

IASB replaces, amends, issue new stds

Question 3

2 reasons : A/C Stds needed

Answer 3

Subjectivity down

Comparability up

Question 4

To describe Financial Statements as complying with IFRS…

Answer 4

FULLY comply all stds & interpretations

Question 5

IFRSF : which organisations are under it

Answer 5

the Trustees/ IASB/ IFRS IC/ IFRS AC

Question 6

the Trustees (no: of members & its duty)

Answer 6

22 trustees
appoints, review, not determine IASB works
raise funds

Question 7

IASB (no: of members & its duty)

Answer 7

14 Members (each 1 vote)
standard setting

Question 8

For Convergence in A/C Stds…

Answer 8

IASB work with national setters

Question 9

International consultation process, the “due process”

6 Stages

Answer 9

Develope IFRS

Agenda > 
Plan with Advisors > 
Discussion Paper for Public > 
Exposure Draft for Public (9 IASB Votes) > 
Standard (9 IASB Votes) > 
Issue Standard

Question 10

IFRS AC advises IASB for

Answer 10

IASB Agenda/ Priorities Timetable/ Implementation

Publish articles to promote new IFRS

Question 11

IFRS IC
Reports to…
Duty…

Answer 11

Report to IASB

Interpret A/C issues (new issues / unsatisfactory previous interpretation)

Question 12

IOSCO agreement with IASB

Answer 12

International Organisation of Securities Commissions

Agreement : Core Standards Project for Companies that list in another country

Question 13

IAS 39

Answer 13

IAS 39 Financial Instruments: recognition and measurement.

issued in 1999

Core Standards Project : IASB and IOSCO
15 standards were highlighted, IAS 39 issued

Question 14

IOSCO Roles

Answer 14

1. Find where new standards/ Improvements are needed

2. Resolve issues with IASB

Question 15

IASB Liaison Members
how many?
duty?

Answer 15

7 IASB Members

duty > convergence of due process of national GAAP and IASB

Question 16

Auditor state ______ of financial Statements (if they are ____, ______ and ________.

Answer 16

Opinion

1. True and Fair
2. Complete & correct (can publish it)
3. Comply Financial Reporting Framework on material aspects

Question 17

General Principles for Auditors

Answer 17

1. Ethical Principles
2. ISA - international standards on Auditing
3. Professional scepticism ? get evidence!

Question 18

Checklist for auditors to form an Opinion

Answer 18

1. Proper A/C records
2. FS agree with records
3. Proper returns of branches we didn’t visit
4. Info and Explanation (necessary ones received?)
5. FS agree with additional info/ explanations

Question 19

Auditor Evaluates

Answer 19

1. FS overall presentation

2. A/C estimates.. reasonable?

Question 20

5 rights : EXTERNAL auditors

Answer 20

access to records
info and explanation from mgmt
shareholder meeting notice and attendance
speak up at meetings about work 
a copy if any written resolution

Question 21

When Auditors need most to speak up at shareholder meetings?

Answer 21

Management disagrees with auditing process

Inform Shareholder

Question 22

XXXXXXXXXXXXXXXXx heading of audit report

Answer 22

(TIM-AA EMO) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion; Emphasis-of-Matter; Other-Matter