Substantive Flashcards
Legal Provision
correspondence lawyers success
board probable
post-year bank
written representation
disclosure
P549 discuss management insight circumstances
Bank balances
bank letter all
balance confirmation
unpresented
window
disclosure accurate
P541 Lodgments ledger statement
P541 savings review items reconciliations
PPE additions
request training
agree addit to inv rights
sample non-current
dep charge time
management useful policy
recalculate reval agree
Schedule cast
P561 review asumptions valuer compliance
Receivables Valuation
customer balances
aged
collection
after-date pre-year balance
breakdown allow rec
GDN receivables cut-off
slow corres invoices dispite
Bank loan
dschedule changes year cast agree closing
new agreement borrowed
New loan proceeds
quarterly statement
Covenants recalculate
Disclosure
P535 Repayments allocated capital interest
Payables and Accruals
List accruals prior
Period ratio
Reperform reconciliation
discuss quantity misstatement run
Circularisation items
GRN before liability cut off
Revenue
Gross profit
schedule stores
revenue prior
revenue overall budget
Invoice recalculate
Cast breakdown
Credit notes trace
Accruals
Schedule accruals cast
Compare list prior
Correspodence auhtorities additional
Post statements payment
Review disclosure accruals legislation
Before count
Materiality audit
obtain instructions control
discuss Third party
During count
observe instructions
sample test counts
discuss IA raw estimated
observe movements
After count (Valuation)
GRNs GDNs listing cut
Inventory compare prior
aged report write down
post sales invoices NRV
Schedule raw finished
P587 post-year credit notes returns write required
Review FSs IAS 2
PPE year-end
Breakdown cast NCA
Verify rights supplier invoice
Sale of defective goods
correspondence liability
enquire lawy other
board directors successful
post-year ledger payment
disclosure lawsuit
Share capital?
board additional
Register
statement cash
Disclosure
Income?
Schedule cast acc
advance exclusion
proof-in-total compare
sundry prior
Restructuring provision?
cast breakdown TB
announcement employ year
obtain breakdown only direct
retraining exclusion
written representation
Disclosures
Vehicle additions?
Disclosure
Discuss History replacement
physically add reg
Cash payment ledger
Recalculate dep old
P576 recalculate disposal agree TB
Potential breach?
Correspodence nature complaint
enquire directors disclosure material
Review policies driving reg
board likelihood
post statement fines
Going concern?
Cash flow
management contingency
bank correspondence
board minutes
supplier legal
going concern
Research and development?
Schedule tb
director rationale
expensed research
capitalised dev agree
market sell
draft FSs verify IAS 38
feasibility project leader
Sales tax?
Agree TB return
compare year-end balance
correspondence out
disclosures current
Depreciation of PPE?
Discuss management dep useful
NCA register revised dep applied
Breakdown dep categories prior
Minimal proof dep PPE
Review charges FSs IAS 16
Director’s bonus?
Schedule cast
individual payroll
amount post bank
review minutes additional
disclosures legislation
P600 Wirtten representation renumeration bonus
Redundancy provision?
announced documentation
board probable
recalculate provision components
post-year ledger payments
Disclosure
written representation
Trade payables?
Period compare
agree payables accruals prior
GRNs payables balance
supplier statement
circularisation reconciling
Review post-year-end payments and follow through to trade paaybles balance
P548 journal misstatement payment run
Revaluation?
Schedule cast confirm
agree revalued included NCA
Recalculate adjustment surplus
title deeds owned
disclosure IAS 16
competency valuer
Rights issue?
board finance
bank received
recalculate split FSs
disclosures reporting
Supplier statement?
cash in transit
Invoice GRN receipt
Further adjusting
Bank reconciliation?
unpresented written
balance per rec
obtain account cast additions
Receivables circularisation?
non follow-up
telephone request
detailed testing
cash transit post
goods transit pre
list suppliers rec error
credit notes pre year
Conciusion of Adjistment
Correspondence likelihood
management adjustment
bank payment customer
Positive Receivables Circularisation
Consent advance
List receivables end cast
sample receivables old credit
Circ letter letterhead year balance
Rights receivables
board title sold third
agree balance customer original
Inventory automation
cast listing confirm accurate
extract sample items verify NRV
calculate inventory holding software compare prior
aged inventory analysis identify items
Accuracy receivables
after-date
aged allowance
Completeness Receivables
Agree balances trade
Review list credit payables
Allowance of receivables
correspondence dispute
after receipts slow
aged receivables status controllers
recalculate compare
board minutes singificant
Payroll fraud
TCWG other frauds
internal controls up frauds
supporting doc total materialtiy
Employee details same
Disposals PPE
breakdown agree NCA register
Recalculate disposal TB
Disclosure compliance IAS 16
Faulty inventory
breakdown held cast
damaged rectified sold invoices NRV
Discuss managent if goods written
Purchases?
operating profit compare
Review monthly purchases fluc
management changes key listing
Recalc accruals year SPL
payment bank ledger account
GRNs purchase accounting
Payroll expense?
cast payroll TB
proof in total actual
compare total payroll
recalculate holiday records
select employee HR payroll
Agree acc reconciliation
Employment Tax
compare accrual prior year
reperform calc employee
agree payment post ledger
review disclosure accrual
Payroll Expense (Analytical)
Compare payroll budget
monthly charge management
proof compare wages
Income Tax accrual
recalculate accrual
payment post bank complete
review disclosure tax
Subsequent Events
condition PPE
schedule NBV NCA
Discuss man disclose non event
Information Processing Controls
Document counts
Existence checks
Range checks
One for one checking
WIP valuation?
prior discuss completion WIP
during count assess level
review variance standard actual
cast schedule WIP TB
Transactions
Occurrence
Completeness
Accuracy
Cut-off
Classification
Presentation
Balances
Existence
Rights and obligations
Completeness
Accuracy & valuation
Classification
Presentation
Sales System
orders recorded
customers poor credit
sales discounts correct limit
overdue receivables timely
Purchases system
order details correct
goods ordered received
liability recorded payables
arithemtic accuracy of invoices
Cash System
Valid receipts banked
Recorded bank ledger
Receipts recorded period
Safeguarded theft
Test of Controls
Enquire management
Observe activitry (sparingly)
Test data
Inspect document
done to achieve check
What auditors do
Control recommendation
Properly described
Clearly address deficiency
Practical
What managers would do
KAM characteristics?
Areas higher assessed ROMM
Singificant auditor judgement relating to areas in FSs which were related to significant management judgment
Effect on audit significant events
WHAT THE ISSUE IS - describe issue
WHY THE ISSUE IS A KAM - refer to intro on KAM
HOW ISSUE WAS ADDRESSED - audit procedures
