Brainscape's Knowledge GenomeTM

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


See full index

AA Question Rote > FR Knowledge Background > Flashcards

FR Knowledge Background Flashcards

1
Q

Are retraining costs included in a restructuring provision?

A

NO

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

Is there a risk of receivable not paying?

A

YES

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

What is meant by cast?

A

Get the breakdown and verify it’s accuracy

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

Are research costs classified as development expenditure in IAS 38?

A

NO

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

If NRV < cost? (understated or overstated)

A

The inventory is overstated

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

What would management do if they’re discussing a major customer?

A

Would likely have a board meeting

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

What document does labour costs relate to?

A

Payroll records

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

What document does production overheads or raw materials relate to?

A

Purchase invoices

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

If trade-in allowances are lower than carrying amounts of vehicles?

A

The depreciation policy might not be reasonable

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

What is aged receivables listing used for?

A

To identify old or slow-moving balances

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

An aged report is used to?

A

Identify old or slow-moving balances

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

What can an intangible project be?

A

It can be capitalised or expensed

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

When is asset recognised?

A

When it has a probable future economic benefit

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

What is a proof in total calculation?

A

Process used to ensure set of records or figures agree with total amount

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

Trade payables circulisation process?

A

Sample of suppliers
Send letters to suppliers
Asked to respond directly to auditor
Compare response from suppliers to records

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

Purchase invoice?

A

Money company owes to suppliers (AP)

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

Sales invoice?

A

Moeny company is owed by customers (AR)

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

If slow moving inventory?

A

Should be written down or an allowance is required

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

When is WIP not relevant?

A

When all goods are finished

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

What is meant by valuation of inventory?

A

Confirming cost of inventory, confirming NRV, write down or allowance is requireqd, reviewing aged inventory report

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

When generating substantive procedures for trade receivables/payables?

A

Focuses on SFP balance rather than on purchases or revenue

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

Difference between redundancy provision and legal claim?

A

Redundancy provision doesn’t involve a lawyer

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

When provision is of a one-off nature?

A

Can’t be comapred to prior year

24
Q

Does revenue require disclosure notes?

A

NO

25
Q

When a loan is for three years?

A

There is a current and a non-current liability. Therefore split needs to be recalculated and confirmed for correctness

26
Q

When should written representation procedure only be used?

A

Where auditor is relying on management’s judgment OR little independent evidence available

27
Q

What is important for generating substantive procedures for anything bank related?

A

Whether it is pre or post year

28
Q

Is analytical procedures and bank balances useful

A

FUCKING NO

29
Q

What will an issue of share capital have?

A

Lots of evidence, no need to rely on management’s judgment

30
Q

An audit test that emphasises pre or post year in bank rec?

A

Agree pre-year-end cash book and post-year-end bank statement

31
Q

What is important for testing in transit items?

A

What records are tested and whether it’s pre or post eyar end

32
Q

When procedures over completeness of trade payables and accruals mean?

A

Must start from outside of accounting records, risk of liabilities omitted from FS

33
Q

When a provision is an estimate, what will management likely do?

A

Management may deliberately understate provision as amount is uncertain

34
Q

When analysing revenue substantive procedures?

A

Look for documentation to support sales transactions

35
Q

When analysing share capital substantive procedures?

A

Double entry used to account for a share issue

36
Q

When land and buildings have been reviewed during the year (substantive procedures)

A

Focus on whether relevant accounting standards were followed regarding revaluations

37
Q

Audit procedures in relation to a specific receivables balance (substantive procedures)

A

Provide evidence that customer is likely to pay outstanding balance

38
Q

Valaution of receivables based on (substantive procedures)

A

Recoverability of debts and whether customers are likely to be paid

39
Q

What should be best action for research and expenditure (susbtantive procedures)

A

Relevant accounting standards

40
Q

What should be best action for going concern (susbtantive procedures)

A

Afford to pay its liabilities when they fall due

41
Q

What should be best action for depreciation (susbtantive procedures)

A

As it’s an estimate, it is up to management judgement

42
Q

What should be best action for redundancy provision (susbtantive procedures)

A

Relevant accounting standards

43
Q

What are examples of analytical procedures?

A

Comparison of results, trends, proof in totals

44
Q

What are subsequent events IAS 10?

A

Events from balance sheet date to when the accounts are signed off

45
Q

What happens to material adjusted events (IAS 10)?

A

Adjusted

46
Q

What happens to material non-adjusted events (IAS 10)?

A

Disclosed

47
Q

Is there an active responsibility to search for adjusting events?

A

YES

48
Q

Should we obtain written representation from amangement from their knowledge of adjusting events?

A

YES

49
Q

When is a contingent asset recognised?

A

When it is virtually certain

50
Q

What is meant by allowance for receivable?

A

The amount of receivable which can’t be recovered

51
Q

Should posting bank receiipts, updating individual customers and performing bank reconciliations be segragated?

A

YES

52
Q

Is GDN or GRN used for receivables?

A

GDN after year end

53
Q

Where should overdraft be included in FSs?

A

In current liabilities

54
Q

Is GDN or GRN used for payables?

A

GRN after year end

55
Q

What must happen to damaged inventory?

A

Be written down to NRV

AA Question Rote (30 decks)

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