INTERNATIONAL ACCA PAPER F8 AUDIT AND ASSURANCE INTERNATIONAL REVISION QUESTION BANK... Editorial material Copyright Accountancy Tuition Centre International Holdings Limited, 2008
Trang 1INTERNATIONAL
ACCA
PAPER F8
AUDIT AND ASSURANCE
(INTERNATIONAL)
REVISION QUESTION BANK
Trang 216 Elmtree Road
Teddington
TW11 8ST
United Kingdom
Editorial material Copyright Accountancy Tuition Centre (International Holdings) Limited, 2008
All rights reserved No part of this training material may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without permission in writing from the Accountancy Tuition Centre (International Holdings) Limited
Acknowledgement
Past ACCA examination questions are the copyright of the Association of Chartered Certified
Accountants and have been reproduced by kind permission
Trang 3REVISION QUESTION BANK – AUDIT AND ASSURANCE (Int) (F8)
CONTENTS
REGULATORY FRAMEWORK
1 Auditors and Auditing Standards (ACCA D01) 1 1001 20
CORPORATE GOVERNANCE
3 Corporate governance (ACCA J05) 2 1007 20
FRAUD, LAWS & REGULATIONS
4 Fraud and compliance seminar (ACCA J01) 2 1009 20
PROFESSIONAL ETHICS AND CODES OF CONDUCT
8 Client confidentiality (ACCA D03) 6 1018 20
AUDIT APPOINTMENT
9 Melton Manufacturing (ACCA J95*) 6 1019 20
DOCUMENTATION
AUDIT PLANNING & RISK ASSESSMENT
RISK MANAGEMENT
20 Grindstock Clothing Company (ACCA J02) 15 1050 20
* Denotes Adapted Qs & As (eg to take account of Internationalisation in 1997 and amendments
to Syllabus detail)
Trang 4MATERIALITY
21 Analytical procedures and materiality (ACCA J02) 16 1051 20
22 Concept of materiality (ACCA D00*) 17 1053 12
INTERNAL CONTROL AND ASSESSING CONTROL EFFECTIVENESS
25 Small firm internal controls (ACCA J03) 19 1062 10
26 Cotsgrove Distributors (ACCA Pilot 1997) 19 1062 20
COMPUTER INFORMATION SYSTEMS
COMMUNICATIONS WITH MANAGEMENT
AUDIT EVIDENCE
ANALYTICAL PROCEDURES
AUDIT SAMPLING
ACCOUNTING ESTIMATES
39 Newthorpe Engineering (ACCA J97*) 29 1095 20
MANAGEMENT REPRESENTATIONS
USING THE WORK OF AN EXPERT
42 Ravenshead Construction (ACCA J86*) 32 1103 20
Trang 5REVISION QUESTION BANK – AUDIT AND ASSURANCE (Int) (F8)
CONTENTS
COMPUTER-ASSISTED AUDIT TECHNIQUES
43 Southwell Engineering (ACCA J94*) 32 1104 20
NON-CURRENT ASSETS
INVENTORY
47 Silverhill Potteries (ACCA J94*) 38 1115 20
48 Trent Textiles (ACCA Pilot 1997) 39 1117 20
49 Perpetual and year-end inventory counts (ACCA J03) 39 1120 20
TRADE RECEIVABLES
LOANS, BANK & CASH
TRADE PAYABLES AND ACCRUED EXPENSES
55 Ravenshead Engineering (ACCA D94*) 46 1132 20
PROVISIONS AND CONTINGENT LIABILITIES
WAGES
SMALL BUSINESSES
AUDIT FINALISATION
Trang 6THE AUDITOR’S REPORT ON FINANCIAL STATEMENTS
REVIEW REPORTS
GOING CONCERN
INTERNAL AUDIT
RELIANCE ON INTERNAL AUDITING
PILOT PAPER (December 07)
Questions
Answers
Marking scheme
Trang 7REVISION QUESTION BANK – AUDIT AND ASSURANCE (Int) (F8)
UPDATING NOTE
The IASB reissued IAS 1 ‘Presentation of Financial Statements’ in September 2007 Amendments to the old IAS 1 are mainly to presentation and terminology and have been reflected throughout these questions
Although IAS 1 does not become effective until periods on or after 1 January 2009, earlier adoption is permitted ACCA operates a six month rule in its examinations based on issue date, whereby accounting standards will not be examined until six months have passed from their date of issue Therefore the revised IAS 1 falls to be examined from the June 2008 examinations
Terminology has therefore been changed throughout the F8 materials The main changes can be summarised as follows:
̈ Balance sheet ⇒ Statement of financial position
̈ Balance sheet date ⇒ end of the reporting period (note that end of the reporting period may also be referred to as the “year end” within the study system and question bank)
̈ Income statement ⇒ Statement of comprehensive income (but see below)
̈ Cash flow statement ⇒ Statement of cash flows (IAS 7 is renamed)
̈ Events after the balance sheet date ⇒ Events after the reporting period (IAS 10 is renamed) The Statement of Comprehensive Income basically consists of two elements – an income statement (the same as the old IAS 1 format) plus other comprehensive income comprising, for example, gains on revaluations, cash-flow hedges, translation of foreign operations and actuarial gains (all of which are still analysed within a statement of changes in equity)
Effectively, the only element that may be dealt within F8 will be the gains on revaluations Thus the Statements of comprehensive income used throughout F8 are the same as the old IAS 1 Income statements