Adhoc Flashcards
What assertion is being tested during the physical verification of motor vehicles?
Existence and evaluation
What is included in substantive testing of cash?
Confirmation of bank balance from bank
Physical cash count performed for material cash balances
What is professional competence?
Acting in accordance with professional standards
Give two limitations of internal control
Human mistakes and unusual transactions
Give two tests of controls that could be performed on purchase system
Check whether petty cash payments have been approved
Check supplier statement reconciliations performed
Give two examples of intimidation threat
Client wanting a different opinion from another firm
Litigation from client over prior year fraud not discovered
Give two controlled procedures that could be performed on payroll system
MD reviews payroll
Timesheets approved by managers
What type of audit file is a written representation?
Current
What threat is contained by FRC ethical standards only?
Management
What three things are true about audit committees?
They make recommendations to board in relation to external auditor
Listed companies need to have one
Head of IA should report to committee
Give two examples of when written representation is required
Support inspection of board minutes
Support management judgement on assertion
