final notes.docx - Note management biasness is a risk which...

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Note: management biasness is a risk which u can put almost in every question because specially in listed companies they hare in pressure to increase profits IFRS 3 BUSINESS COMBINATION Goodwill See impairment? Is consideration at fair value Any deferred/Contingent considered discounted and included? NCI at fair value? If company not listed then fair value complements ifrs 13? All net assets included? Any legal or professional fees should not be included Net assets valued due diligence value may not be done correctly For above ISA 500 audit evidence require auditor to evaluate expert competence, objective, capability IFRS 3 requires extensive disclosure related to goodwill. Is that done correctly? IFRS 8 Separate disclosure if new area contributes 15% of revenue Segmental information provided may not be sufficient in detail Revenues may be misallocated in between segments and disclosure is inaccurate Fees factors Cost should be aligned to hours Lowballing allowed but maintain quality No contingent fees IFRS 2 share based payment Market condition is not relevant as per ifrs 2 Expense and equity to be recognized over the vesting period Fv should be measure at grand date to calculate expense IAS 17 Only capitalized if amount is greater then fair value and useful life s majority part If operating lease then ensure depreciation not charged No finance lease or land it is always operating lease Check risk and rewards, legal title transferred, responsible for repair and maintenance Finance charges calculated using actuarial method
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IAS 16 for revaluation entre class of assets should be revalued ensure proper disclosures made is deferred tax related to revaluation is accounted properly? For which debit is chargd to equity dismantling cost needs to be capitalized and discounted & provision created against them any significant and separate components must be deal and depreciated separately Group audit a)Associate equity method of accounting should be applied ? is profit from associate shown as separate line item? Investment in associate is properly accounted? Does 25% shareholding give rise to significant influence if not then it will come under ifrs 9 b)Consolidation Mid year acquisition accounted properly Good will calculated correctly Intra group eliminated IAS 40 A/C to ias 40 gain/losses recorded in profit and loss rather other comprehensive income Is revaluation properly accounted with respect to ias 40 New audit client High detection risk Detailed procedures Opening balances and comparatives may be misstated ISA 600 special considerations Ethics Competence Resources
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Regulatory environment Procedures Money laundering 3 stages Placement Layering Integration 4 elements of money laundering program MLRO officer Firm wide training programme Customer due diligence Records
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