ACCA F8 - Audit and Assurance Revision Kit 2016

74 Which of the following procedures will provide appropriate audit evidence in respect of the
completeness of non-current assets?
A
B
C
D
For a sample of assets selected by physical inspection, agree that they are listed on the non-current
assets register
For a sample of non-current assets listed on the non-current assets register, physically inspect the
asset
For a sample of assets on the assets register, recalculate the net book values in accordance with the
entity's accounting policies.
For a sample of assets on the assets register, inspect relevant purchase invoices or deeds.
75 At the planning meeting, it was decided that an auditor’s expert should be sought in relation to the valuation
of Truse Co’s properties as the company has not used an independent valuer.
ISA 620 states that the nature, timing and extent of audit procedures to evaluate the work of the auditor’s
expert depend on the circumstances of the engagement.
Which of the following matters should the audit team NOT consider in determining the nature, timing
and extent of these audit procedures?
A
B
C
D
The risk of material misstatement associated with Truse Co’s properties
WSD & Co’s experience with previous work performed by the expert
Whether the expert is subject to WSD & Co’s quality control policies and procedures
The existence of any interests in or relationships with Truse Co that might pose a threat to the
expert’s objectivity
76 The audit junior has been assigned to the audit of the bank and cash balances of Truse Co. He has noted
down the audit evidence he plans to obtain in respect of the bank and cash balances:
1. Bank reconciliation carried out by the cashier
2. Bank confirmation report from Truse Co’s bank
3. Verbal confirmation from the directors that the overdraft limit is to be increased
4. Cash count carried out by the audit junior himself
What is the order of reliability of the audit evidence, starting with the most reliable first?
A 4, 2, 1 and 3
B 2, 1, 4 and 3
C 4, 3, 2 and 1
D 2, 4, 1 and 3
Newthorpe (CBE)
20 mins
The following scenario relates to questions 77 – 81.
You are an audit manager, auditing the financial statements of Newthorpe Engineering Co, a listed company, for the
year ended 30 April 20X7.
Newthorpe’s management has provided you with a schedule of the realisable values of the inventories. A full
inventory count was carried out at 30 April 20X7.
Questions 39