Acca P7 Notes - 24991 Words

ACCA Paper P7 (INT) Advanced Audit Assurance Class Notes December 2011 Lecturer: Contents INTRODUCTION TO THE PAPER 2 CHAPTER 1 – REGULATORY ENVIRONMENT 3 CHAPTER 2 – PROFESSIONAL AND ETHICAL CONSIDERATIONS 8 CHAPTER 3 – PRACTICE MANAGEMENT 13 CHAPTER 4 – ASSIGNMENTS I: THE AUDIT OF FINANCIAL STATEMENTS 16 CHAPTER 5 – ASSIGNMENTS II: GROUP AUDITS 42 CHAPTER 6 – AUDIT REPORTS AND OTHER REPORTS 45 CHAPTER 7 – ASSIGNMENTS III: OTHER ASSIGNMENTS 57 CHAPTER 8 – CURRENT ISSUES AND DEVELOPMENTS 63 INTRODUCTION TO THE PAPER AIM OF THE PAPER The aim of the paper is to apply relevant knowledge, skills and exerciseprofessional judgement in analysing, evaluating and concluding and reporting onthe assurance engagement†¦show more content†¦There is just one area that is important enough to get a brief mention in these notes: Audit Committees Audit Committees have been a requirement for US listed companies since the1970s, and are also part of the UK Corporate Governance Code.Audit Committees are a sub-committee of the Board of Directors, and are typicallymade up only of Independent Non-Executive Directors. Their main roles: ââ€" To oversee the company’s financial reporting, internal control systems, andrisk management processes. ââ€" To help appoint and monitor the performance of the internal audit function.ââ€"  To improve the independence of internal audit (e.g. by considering thebenefits of outsourcing it). ââ€" To act as the main contact point for external auditors, to improve their independence. ââ€" To suggest a firm of external auditors. ââ€" To monitor the quality of both internal and external audit work. MONEY LAUNDERING AND THE AUDITOR Definition The process by which criminals attempt to hide the true source of their funds in an attempt to make it look like their funds have come from legitimate sources. Inmany countries, the definition is even broader, and possessing or transferring theproceeds of ANY crime can be money laundering.For example, breaching health and safety regulations in order to save money makes the company a money launderer – it possesses the cost savings, and these were saved byShow MoreRelatedQuestions On The Importance Of Auditor Independence2598 Words   |  11 Pagesand free from any material misstatements. True and Fair does not mean that the accounts are 100% accurate but it means that the auditors assumptions are reasonable. After the completion of Audit process the audited accounts are published with the notes to Statement of Financial Positions which has been approved by auditors. (Trueandfair website, 2014) 3. Importance of Auditor Independence: External Auditors are key to any organisation. They can build your business credibility in the market and theyRead MoreAudit Approach1484 Words   |  6 Pagesstatement/profit and loss account items. The justification for this approach is the notion that 42 student accountant February 2008 technical a risk-based approach to auditing financial statements relevant to CAT Paper 8 (UK) and (INT) and ACCA Qualification Papers F8 and P7 (UK) and (INT) if the relevant management assertions for all balance sheet (statement of financial position) accounts are tested and verified, then the profit/loss figure reported for the accounting period will not be materially misstatedRead MoreACCA Paper F8 Slides7431 Words   |  30 PagesACCA COURSE NOTES June 2014 Examinations Paper F8 Audit and Assurance (INTERNATIONAL) Please spread the word about OpenTuition, so that all ACCA students can benefit. ONLY with your support can the site exist and continue to provide free study materials! OpenTuition Course Notes can be downloaded FREE from http://opentuition.com Copyright belongs to OpenTuition.com - please do not support piracy by downloading from other websites. Visit opentuition.com for the latest updates, watch free videoRead MoreRegulation Standardising Accounting Practice8632 Words   |  35 Pagesshould not be added to consolidated earnings. 4. In rare circumstances, treasury stock may be considered an asset of the firm, but dividends on such chares should not be considered as revenue. Chapter 5, p2 5. Officers’, ‘affiliates’, and employees’ notes receivable should be separately disclosed. The listing of these principles marked the beginning of the attempts by the profession to regulate the practice of accounting. It was the start of moves by the profession to establish a regime of self-regulation