audit procedures Flashcards
audit evidence must be
sufficient
relevant
reliable
problems
“discuss with management” doesn’t score marks
“dont use standard audit procedures like cast or add up”
write how and why
dig deep in scenario
refer to FS assertions if relevant eg. if related to accuracy of a number
a good audit procedure
start with fact
refer to audit evidence (ideally 3rd party)
explain fully how the test works
75 ppl from staff were told they will be made redundant in 6 months
they will be given 10% of their salary as a redundancy payment
-obtain redundancy note, to ensure redundancy notice is before year end - past event - provision required
-75 staff- review board minutes to ensure that this is full list and ensure this programme is authorised by board, no authorisation means not confirm
-get written representations from management to confirm they are committed to this program
-obtain individual letters sent to staff, confirm payout details are 10%, 100% and these are used in inputs
-recalculate to ensure arithmetical accuracy
-confirm staff’s years and details from HR records to confirm inputs are accurate