Audit-CAP2

wardso84

I haven't started audit yet. What areas should i focus on and what do you think are the best ways to revise for this subject?

Thanks very much

noveltea

I am kinda going over audit reports and ethics and going over the papers and stuff like that.
One thing I am really confused about is saple paper 2 case study: question A is "describe the key controls which should be in place over cash sales"
Now what I took a key control to be is like making sure inherant risk is detected. So its a control that prevents or detects stuff that is put in in error or fraud but according to the answer the key controls are related to the assertions. Am I totally wrong in the way that I am thinking. should I be thinking that key controls are assertions.

Prezatch

noveltea wrote: »

So its a control that prevents or detects stuff that is put in in error or fraud

The above is the part you want to remember.

Simply put, the assertions are just headings to put the key controls under, to make you sound like you know what you're talking about. Off the top of my head I think that question related to cash sales in a bar. So put yourself in the shoes of a bar manager with barstaff. You would, for example, install CCTV cameras around the registers area as a 'control' to stop your staff serving drinks and just pocketing the money instead of going to the till with it and registering the sale. And then all you do is classify it under one of the assertions - maybe accuracy. Because by having this control you are making sure all sales are recorded and so the figure for sales will be accurate.

In general try and use assertions as much as possible in answers as headings or to describe what your point relates to.

Prezatch

wardso84 wrote: »

I haven't started audit yet. What areas should i focus on and what do you think are the best ways to revise for this subject?

Thanks very much

Past papers.

Audit opinion is very likely I'd imagine (adverse, except for etc.)

Hanley

JoeyD wrote: »

Past papers.

Audit opinion is very likely I'd imagine (adverse, except for etc.)

Emphasis of matter is another relatively rare one, but it's becoming more relevant over the last year considering how things are. INM had an emphasis of matter para put in in relation to their bond holders, it's not qualified, but shows there is a significant concern over the business going forward.

wardso84

JoeyD wrote: »

Past papers.

Audit opinion is very likely I'd imagine (adverse, except for etc.)

thanks!

PB1982

Anybody know if there are any good examples of a fixed assets question in any of the past papers? Doesn't seem to be a topic that's examined frequently?