Assertions about Account Balances and Related Disclosures at the Period End (2)

Question 1

What is meant by presentation? (Instruments)

Answer 1

Assets, liabilities and equity instruments are appropriately aggregated or disaggregated and are clearly described

Question 2

What is meant by presentation? (Disclosures)

Answer 2

Related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework

Question 3

What does an entity sometimes use?

Answer 3

An expert (e.g. chartered surveyor) to assist them in preparation of the FSs

Question 4

What is a management’s expert?

Answer 4

An individual/organisation possessing expertise in a field other than auditing or accounting, whose work is used by the entity to assist in preparation of the FSs

Question 5

What if an auditor is unable to obtain sufficient appropriate evidence?

Answer 5

They should consider the implications for the auditor’s report

Question 6

What does ISA 500 state? (expert)

Answer 6

When wanting to rely on the work of the expert, auditor must evaluate the competence, capabilities and objectivity of the expert

Question 7

What does ISA 500 state? (obtain)

Answer 7

Obtain an understanding of the work done

Question 8

What does ISA 500 state? (evaluate)

Answer 8

The appropriateness of the work done as audit evidence