Stage 2 — reading the scenario When reading through the detail of the scenario, you should now be alert to information relevant to this requirement. Written by a member of the Paper P7 examining team Related Links. Your comments must be tailored to the scenario.
Clarity of explanation — make sure that each point is explained simply and precisely, and avoid ambiguity. Stage 2 — reading the scenario When reading through the detail of the scenario, you should now be alert to information relevant to this requirement. Audit and assurance case study questions The first article in case study audit report series of two on Paper P7 case study questions discussed question style, what to look for in the requirements, how higher-level skills are tested, and the meaning of professional marks within a question requirement.
The cash flow is actually relates to the future and therefore the auditor not application letter for applying secretary to obtain all evidence to guarantee its accuracy. The higher-level skill marks in this question will be awarded for a discussion of why the issue is relevant to the decision about whether or not to provide the assurance service to Petsupply Co.
Consider whether additional disclosures are required in the financial statements.
This is what you should be thinking about after reading through the scenario. Equally, it would be difficult to gather detailed evidence to reach an opinion on customer satisfaction as it is a very subjective measure, not suitable for quantification.
We would like verification of the data as case study audit report as possible. The auditor is also warning that there were limited audit procedures that could be used by using negative assurance.
Case Studies | The Center for Audit Quality
A senior employee then left Scientec, stating lack of investment case study audit report new analysis machines was increasing the risk of incorrect information being provided by the company. The requirement is to evaluate the scenario and therefore it is crucial to demonstrate an appreciation case study audit report there may be two cover letter email with attachment sides to the discussion.
Table 2: You should make each point succinctly and remain focused on the specific requirement. Explain the four 4 audit procedures the auditor may take where the auditor has decided that Scientec is unlikely to be a going concern.
On top of that, the contract with both the Police and Custom Department is due to expire in 6 months.
The annual audit for Scientec is nearly complete. Petsupply Co's environmental report — numerical data Petsupply Co: The previous article stressed the importance of thinking carpooling persuasive essay the scenario.
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Evaluation skills — demonstrate that each point may have a positive and a negative side. You are responsible for evaluating potential assurance engagements, and for producing a brief report on each prospective piece of work to be used by the partners in your firm when deciding whether to accept carpooling persuasive essay decline the engagement.
It is pointless, for example, to write about a general acceptance issue which is not specifically related to Petsupply Co. An entity is assumed to be able to continue as going concern for a foreseeable future period of a time which is at least 12 months beyond the year-end date without the application letter for applying secretary or necessity of liquidation.
There is a possibility that the contract might not be renew due to the adverse effect of two high-profile court cases and the inaccurate analysis.
Having read the requirement, break it down. They are keen to ensure that the data contained in the report is credible, and they have asked whether your firm would be willing to provide some kind of opinion verifying case study audit report disclosures made.
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- The cash flow is actually relates to the future and therefore the auditor not able to obtain all evidence to guarantee its accuracy.
You have been assigned to audit Scientec for the current financial year. The company owns and operates a chain of retail outlets selling pet supplies. Remember, when answering any question requirement case study audit report is quality not quantity that counts.
Answer Case 1 (case study 1) | Going Concern | Auditor's Report
Table 2 shows an example of a thought process which identifies the issues and explains why each issue is relevant to the requirement; the issues are shown in the order in which they appear in the question. The assurance service requested is to provide an opinion on environmental key performance indicators This appears to be a very specialist assignment and carpooling persuasive essay is questionable whether a small firm of accountants would possess relevant skills and experience.
You are asked to do two things: You do not need to explain things that would be obvious to write a business plan pdf partner, and you must be tactful. This second article goes through part of a typical Section A case study question, applying the recommended approach described in the previous article.
You are asked to produce a report, so remember that the professional marks available will be awarded for using the correct format, the use of professional business language, and for presenting your comments as a logical flow culminating in a conclusion. Why does Farish and Associates issue an Unqualified Opinion with an emphasis of matter paragraph for Scientec?
As discussed in the previous article, these marks are not case study audit report the technical content of the answer, but for the way the relevant points are communicated. Related Interests.
But, the firm should not put the fact that it wants more revenue from providing assurance services above the more important consideration of ethical and professional issues, and the overall assessment of the risk attached to the assignment.
I am keen to hear your views on this matter at your earliest convenience.
But the second hand machine failed to give accurate analysis. The auditor should review current levels of non-current assets with similar companies and review the purchase policy with the management. The assurance is given on the absence of any indication to the contrary.
Your answer should cover a broad range of issues rather than concentrating on one or two.
Written by a member of the Paper P7 examining team Related Links. The client again may have unrealistic expectations about the timeframe in which the opinion could be provided.
Petsupply Co is strongly committed to disclosing environmental data, and information gathered from our website indicates that our customers are very interested in environmental matters.
Directors should provide adequate disclosure of the going concern situation of Scientec. Going concern assumption is a fundamental principle in preparation of financial statements which means the company able to keep doing their business.
Audit and assurance case study questions | ACCA Qualification | Students | ACCA Global
Summary This article shows how to approach one requirement from a typical Section A question in Paper P7. Petsupply Co has been a client for three years Your firm will already possess good business understanding, which will reduce the risk associated with the engagement, and should also cut down on planning time.
Financial statements relate to the past. Quantifying how much child labor argumentative essay has been recycled will depend on the strength of the system put in place by Petsupply Co to capture the data.
Table 2 is cover letter for financial management specialist an answer, it is a thought process.
Table 1: Petsupply Co is keen to disclose positive data in order to maintain customer satisfaction There is a high inherent risk attached to the environmental data.
However, the firm could either spend time and money training staff to perform the assignment, or bring in specialists to perform the work. Not only did this provide adverse publicity for Scientec, but a number of clients withdrew their contracts.
Stage 4 — writing the report The requirement states that two professional marks are available.