ACCA F8 - Audit and Assurance Revision Kit 2016

Marks
(c)
(d)
Up to 1 mark per well explained application control
– Document counts
– Control totals
– One for one checking
– Review of output to expected value
– Check digits
– Range checks
– Existence checks 4
Up to 1 mark per substantive procedure
– Check additions of bank reconciliation
– Obtain bank confirmation letter
– Bank balance to statement/bank confirmation
– Cash book balance to cash book
– Outstanding lodgements
– Unpresented cheques review
– Old cheques write back
– Agree all balances on bank confirmation
– Unusual items/window dressing
– Security/legal right set-off
– Review reconciliations for saving (deposit) accounts
– Cash counts for significant cash balances
– Review disclosure of bank and cash in financial statements 7
30
(a)
ISA 260 requirements
(i)
(ii)
It is important that auditors communicate throughout the audit with those charged with governance
for the following reasons:
It assists the auditor and those charged with governance to understand audit-related matters
in context and allows them to develop a constructive working relationship.
It allows the auditor to obtain information relevant to the audit.
It assists those charged with governance to fulfil their responsibility to oversee the financial
reporting process, thus reducing the risks of material misstatement in the financial
statements.
Examples of matters that the auditors may communicate with those charged with governance:
The auditor's responsibilities in relation to the audit of the financial statements, including that
the auditor is responsible for forming and expressing an opinion on the financial statements
and that the audit does not relieve management or those charged with governance of their
responsibilities
The planned scope and timing of the audit
Significant deficiencies in internal control
The auditor's views about significant qualitative aspects of the entity's accounting practices,
including accounting policies, accounting estimates and financial statement disclosures
Significant difficulties encountered during the audit
Significant matters arising from the audit that were discussed or subject to correspondence
with management
Written representations requested by the auditor
Other matters that, in the auditor's professional judgement, are significant to the oversight of
the financial reporting process
Mock exam 1: answers 201