Overall Review of FSs (2)

Question 1

What do auditors consider when considering whether accounting policies are appropriate? (Policies industries)

Answer 1

Policies commonly adopted in particular industries

Question 2

What do auditors consider when considering whether accounting policies are appropriate? (Substantive authoritative)

Answer 2

Policies for which there is substantial authoritative support

Question 3

What do auditors consider when considering whether accounting policies are appropriate? (Accounting standards FSs)

Answer 3

Whether any departures from applicable accounting standards are necessary for FSs to give a true and fair view

Question 4

What do auditors consider when considering whether accounting policies are appropriate? (FSs substance underlying)

Answer 4

Whether FSs reflect the substance of underlying transactions and not merely their form