This preview shows pages 13–15. Sign up to view the full content.
implications across the group of issues identified at a particular subsidiary. In addition, the requirement to assess the adequacy of a report from a subsidiary auditor tests the candidate’s knowledge of reporting and their ability to assess whether it is appropriate to rely on another firm. Available Marks Requirement Technical marks Skills marks Skills assessed Identify and explain any known and potential issues which you believe may give rise to material audit adjustments or significant audit risk in the group accounts. 6 10 Linking issues with audit risk e.g. no fair value review, growing business leads to potential undervalue of other intangibles Appreciate potential difference between Ruritanian accounting standards and IFRS and impact on group accounts Identify potential risk from use of overseas auditors Identify potential non compliance with IFRS impacts on group accounts (e.g. IAS 19) Identify lack of fair value adjustment and implications for accounts Identify that goodwill adjustments will be material Outline for each issue the additional audit procedures, if any, required to enable us to sign our audit opinion on the group accounts. 4 5 Ascertain gaps in work performed and recommend appropriate audit work Identify the need for tax expert to determine adjustment to the group accounts Identify need for expert advice in respect of fair value adjustments and IAS 19 Appreciate inadequate work simply to agree to bank statement Identify appropriate audit tests Total marks 10 15 Maximum marks 25
has intentionally blurred sections.
Sign up to view the full version.