Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AA Question Rote > Acronyms > Flashcards

Acronyms Flashcards

1
Q

Why obtain customer balance? (receivables)

A

To agree to trade receivables balance in TB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why get after-date cash receipts? (Receivables)

A

To follow through to year-end receivables balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why get a sample of GDN (Receivables)

A

Ensure recorded in correct accounting period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why review post-year-end bank ledger and bank statements?

A

To identify whether payment has been made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why obtain copy of a legal claim?

A

To understand basis for and the amount claimed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why obtain a bank confirmation letter (bank loan)

A

Confirm the outstanding balance and agree to loan balance within FSs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why obtain copy of loan documentation (bank loan)

A

Confirm amount borrowed and repayment terms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why review loan agreement for details of covenant (bank loan)

A

Recalculate to identify if any breaches have occurred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why obtain receipt of a loan?

A

Agree amounts to loan documentation and bank statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Why recalculate a finance cost (loan)

A

To interest rate and amounts outstanding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why obtain a useful life policy for PPE additions?

A

To confirm if amount of time is needed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How to confirm if training costs are expensed (NCA additions)

A

Confirm using a journal entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why recalculate depreciation charge? (NCA additions)

A

Confirm that calculations have been appropriately time-apportioned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why obtain detailed breakdown of costs (NCA)

A

Confirm it is included in NCA register to ensure completeness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

When question says bank balances?

A

Think bank reconciliation and it’s accessories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why examine old unpresented cheques (bank balances)

A

To ensure they are written back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Where to agree bank ledger to (bank balances)

A

Year-end bank statement and bank confirmation letter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why inspect correspondence from customer (legal claim)

A

Assess likelihood that customer will pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why reperform supplier statement reconciliations (payables)

A

Agree individual supplier balances and investigate any reconciling items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why review journals entries processed for trade payables?

A

Correct misstatement of trade payables due to payment run

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Which assertion does a payables circularisation relate to?

A

Completeness (useful to follow up on non-responses)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which evidence should be provided for getting evidence of payment f or a legal claim?

A

Post-year-end bank statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What sort of procedure is a proof-in-total calculation?

A

An analytical procedure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Why obtain credit notes (revenue)

A

To remove from revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Why cast a breakdown of revenue?

A

To agree to TB and FSs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Why select a sample of sales invoices? (Revenue)

A

To agree back to customer master data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Can GDNs confirm completeness of revenue?

A

Yes, by comparing to detailed sales listing in the FSs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Why recalculate invoice totals (revenue)

A

So it includes anu discounts and sales tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Why obtain a proposed inventory count instructions? (inventory count)

A

Review any control deficiencies and discuss them with management prior to counts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is important when deciding which warehouse to attend for an inventory count?

A

Determine which warehouse has the most materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Why obtain a copy of sequentially numbered inventory sheets?

A

To follow up testing at a final audit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Why select a sample of inventory sheets?

A

To perform tests counts from inventory sheets to physical inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Why observe an inventory count?

A

To ensure third-party inventory is removed and ensure inventory is in good working order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Rights and obligations procedure for NCA?

A

Confirm purchase price to supplier invoices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Why inspect bank ledger and bank statement (share issue)

A

Evidence of cash received from a share issue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

If sum received less than when shares were issued?

A

Confirm difference is treated as share capital called up but not paid in FSs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Why agree all assets to non-current asset register?

A

To confirm existence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Why recalculate revaluation adjustment?

A

Agree correctly recorded in the revaluation surplus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

When non-response with client’s permission? (confirmation)

A

Team should arrange to send a follow-up confirmation request

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

How to confirm amount from a balance owing for receivables?

A

Using after-date cash receipts and GDNs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How to test difference in cash in transit?

A

Agree to post-year-end cash receipts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Why obtain written representation from management (legal claim)

A

To confirm the likelihood of a lawsuit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

When assessing the adequacy of a disclosure. What should it relate to?

A

An accounting standard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What can post-year-end cash receipts be used for in receivables?

A

What debt was recovered by the audit completion date

45
Q

When should standard cost cards be agreed to?

A

Raw materials
Labour costs
Overheads allocated

46
Q

When to get an inventory listing?

A

Agree to inventory records

47
Q

Purchases invoices are compared to what in inventory?

A

Raw materials

48
Q

Time sheets are compared to what in inventory?

A

Wage records

49
Q

Why review post-year-end sales invoices (inventory)

A

To assess if NRV is above cost. Determine if adjustment is required

50
Q

Why obtain and cast an inventory listing?

A

To agree total to inventoruy records

51
Q

Agree quantity of products shown at year end to what? (inventory)

A

Inventory count records

52
Q

What are cost cards for in inventory?

A

Finished goods

53
Q

Why review post-year-end payments for damage settlements?

A

To assess reasonableness of the provision

54
Q

When should an allowance be provided for receivables?

A

If it unlikely they will be recovered

55
Q

Why obtain a schedule of income?

A

To trace to TB

56
Q

What should be done to sample donations? (income)

A

Trace to bank statements and income ensuring they are recorded completely and accurately

57
Q

Substantive procedure for deferred income?

A

Make sure it is excluded from current income and instead recognised as deferred income

58
Q

Why obtain a breakdown of a restructuring provision?

A

Confirm only direct expenditure relating to restructuring is included

59
Q

Should written representation be obtained for a restructuring provision?

A

Yes, as it is subjective

60
Q

Should retraining costs be included in a restructuring provision?

A

No

61
Q

Why review post-year-end payments (provisions)

A

To assess whether provision is reasonable

62
Q

When a bank loan is repaid early?

A

There are early settlement charges

63
Q

Where to agree loan proceeds?

A

To bank ledger account and bank statements

64
Q

How to agree oprning and closing balances of loans?

A

Cast schedule to confirm accuracu and agree TB and draft FSs

65
Q

What can a registration number of a vehcile be used for?

A

Agree to non-current asset register

66
Q

Where to agree cash payment (vehicle additions)

A

To bank ledger account and bank statement

67
Q

Why discuss with management a vehicle’s useful life

A

To determine if vehicles are being used for their entire period

68
Q

If difference due to cash in transit, where should it be agreed to?

A

Post-year-end cash receipts

69
Q

If difference due to goods in transit, where should it be agreed to?

A

Pre-year-end GDN

70
Q

Why review customer correspondence for receivables?

A

Assess likelihood of payment

71
Q

Why obtain cash forecast (going concern)

A

If company has sufficient cash flow

72
Q

Directors and going concern?

A

Important to get their opinion through written representation

73
Q

What documents are needed to trace inventory items (goods and WIP)?

A

Obtain relevant cost sheets to agree to PI, time sheets, etc

74
Q

Why are post-year-end sales invoices useful?

A

To determine if NRV is above cost

75
Q

Why obtain post-year-end credit notes for WIP inventory?

A

Could signify write down is required

76
Q

Why obtain a schedule of intainglbe assets?

A

To cast and agree to general ledger, TB and FSs

77
Q

Market research reports for intangible assets?

A

Probable future economic benefits arise

78
Q

How to agree expensed as research and capitalised as development?

A

To invoices

79
Q

Why review feasibility reports for intangible assets>

A

Confirm technical feasibility and intention to complete the project

80
Q

What is a sales tax liability?

A

A current liability

81
Q

How to calculate sales tax liability?

A

Sales tax charged - sales tax incurred

82
Q

How to review any additional outstanding payments due to a tax authority?

A

Any current and post-year-end correspondence

83
Q

Where to compare a sales tax liability?

A

To prior year balance and investigate any differences

84
Q

Which document is individual bonus payments agreed to?

A

Payroll records

85
Q

How to confirm amount of bonus paid?

A

To bank ledger and bank statements

86
Q

Why perform proof-in-total for depreciation charge?

A

Discuss with management if significant fluctuations arise

87
Q

Which standard is depreciation included in?

A

IAS 16

88
Q

How to check if new rates of depreciation have been applied?

A

Through non-current asset register

89
Q

Why obtain a breakdown of asset categories for depreciation?

A

For comparison and discussion with management

90
Q

Why review asset expenditure budgets for dpereciation?

A

So revised asset lives correspond with the planned period

91
Q

Receivables and rights and obligations assertion?

A

Review bank confirmations and loan agreements for evidence that receivables have been assigned as security for company

92
Q

What to discuss with directors in a redundnacy provision?

A

Confirm their intention and whether a present obligation exists at year end

93
Q

Why recalculate a redundancy provision?

A

To ensure components of calculation to supporting documentation such as employee contracts

94
Q

Is consent required for a receivables circulisation?

A

Yes, usually from FD

95
Q

Why review after-date invoices and credit notes for trade payables and accruals?

A

To ensure no further items need to be accrued

96
Q

Post-year-payments and trade payables accruals used for>

A

Ensuring recording in correct period

97
Q

Where to confirm amount from legal claim?

A

Post-year-end bank ledger and bank statement. Confirm if the provision is reasonable through actual payment

98
Q

How should receipt of bank loan be confirmed?

A

Bank ledger account and bank statement

99
Q

What should be referenced when recalculating finance cost?

A

Reference to amounts outstanding during year

100
Q

How to confirm rights and obligations?

A

Agree to supplier invoices

101
Q

Why recalculate depreciation?

A

For time apportion

102
Q

Where should bank confirmation letter amount be agreed to?

A

Bank reconciliation and bank ledger account

103
Q

Where should outstanding lodgments be agreed to?

A

Pre-year-end bank ledger and post-year-end bank statements

104
Q

Which document provides evidence for a share issue?

A

Bank statement and ledger for evidence of cash received

105
Q

Why recalculate share issue?

A

Ensure correctly recorded in share capital and share premium

106
Q

Post-year-payments at restructuring provisions?

A

Used to assess reasonableness

107
Q

What are asset expenditure budgets useful for in depreciation?

A

To assess whether there are any plans to replace equipment

108
Q

How to confirm reasonableness of a depreciation rate?

A

Through industry average

109
Q

Where should all bank accounts be included on?

A

The TB

AA Question Rote (29 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions