Chapter 7 Flashcards
what must audit evidence be
sufficient and appropriate
what type of evidence do you need for the validity of financial statements ( acronym)
ACCA COPER
What is ACCA Coper
Accuracy
Completeness
Cut off
Advocacy
Classification Occurrence Presentation Existence Rights and obligations
what out of ACCA Coper relates to assets and liabs
Completeness, rights and obligations, existence, classification, accuracy, presentation
what out of ACCA COPER relates to transactions and events
Accuracy, completeness, cut off, occurrence, presentation
8 types of procedures to obtain audit evidence
inspection of assets inspection of documents observation enquiries confirmation recalculation reperformance analytical procedures
what does enquiries mean
seeking information from staff or external sources
what are examples of data analytics can be used to gather evidence
analysis of sales trend by product
matching all purchases to an order form, invoice and GRN
examples of substantive analytical procedures
comparisons to PY
doing a simple calculation of something like depreciation and comparing to what is in FS
what must auditors do in regards to opening balances
obtain sufficient appropriate audit evidence about whether the opening balances are materially misstated
how can audit obtain sufficient appropriate audit evidence about whether the opening balances are materially misstated
check they’ve been rolled forward correctly
check if any policies have been changed or restatements
review predecessors working papers
if there is a new auditors, there must be an other matter paragraph in the audit report, true or false
true
what opinion would the auditors have if they were unable to obtain appropriate evidence on opening balances
qualified except for disclaimer or opinion
what opinion would the auditors have if the opening balances were materially misstated
qualified except for or adverse opinion
what opinion would the auditors have if they had difficulty confirming opening balances
disclose as key audit matter
