Exam Techniques

Question 1

Sufficiency of Evidence Obtained

OCW-N

Answer 1

O - Observation
C - Comment
W- Why
N - What now? (If INSUFFICIENT > Recommend FURTHER audit procedures necessary)

Question 2

Implication on the Audit Report

NSOB

Answer 2

N - NATURE - Nature of the modification (Misstatement / Limitation of Scope)
* O
* A
* C
* A
* N

S - SEVERITY
* Materiality (Whenever materiality is given in the question we must make use of it)
* Pervasiveness

O - OPINION (IF NOT MATERIAL > we do not go the OPINION)

B - BASIS (IF NOT MATERIAL > we do not go the BASIS)

If adjustments are not made

Question 3

Principal Audit Procedures

DADA

Answer 3

In order to design audit procedures we need to understand a critical information from the Q:

D - Dollar value
A - Accounting standard
D - During the year
A - Assertions

DADA is to design only procedures which are RELEVANT!!! Onlt then you can start designing your procedures!

Question 4

Assertion

COCA-CP & CARE-CP

Answer 4

CLASSIFICATION ( Recognition)
ACCURACY (Measurement)

These two are the most common/popular

Question 5

MADCS

Question 6

CCO - REQI

Question 7

When talking abount valuation of an asset we always think about 4 words:

RAID

Answer 7

R - Revlauation
A - Amortization
I - Impairment
D - Depreciation