Short form questions- step 7 Flashcards
Quality management procedures to ensure completion of planned audit work
- Suitable audit plan (engagement partner)
- communication of audit plan
- allocation of audit work
- adequate supervision
-measures to ensure work completed to standard
Quality management procedures - review
senior members of audit team
engagement partner to ensure sufficient evidence
Key variables relevant to revenue subjected to sensitivity analysis
rate/speed of switching
number of cancelled subscriptions
number of new customers attracted from competitors
point at which current service is withdrawn
subscription fees in each county
exchange rates
inflation rate/price
Acceptance procedures - list of sources information to consider
- prior year financial statements
- disclosure (sustainability/climate related)
- prior year auditor’s report
-analytical procedures - industry experts
- external industry experts
- internet search
- information on Companies house
- credit reference agencies
Discovery - subsequent event (before issue of financial statements and before signing audit report)
- discuss basis for claim
- inspect correspondence with customers/lawyers
- ascertain if it relates to interim financial information
- material
- going concern
- postponing
- impact on assurance report
Uncertainty over going concern if directors disclose
- unmodified opinion
- modified report
“material uncertainty related to going concern”
What does “material uncertainty related to going concern” do
- draws attention to note
- states material uncertainty exists
- states auditors opinion not modified in this respect
Uncertainty over going concern if directors do not disclose
- misstatement
- material = qualified opinion
- pervasive = adverse opinion
- modified opinion/report
- basis for qualified/adverse opinion states
“material uncertainty exists”
“FS do not adequately disclose this matter”
