colm foley b comm, aca, msc accounting p2 audit · pdf filequestions on audit of groups - acca...

Colm Foley B Comm, ACA, Msc Accounting

P2 Audit Practice & Assurance Services Teaching Plan September to April 2016 (Online)

1

Lecture Topic No.

Chapter Ref Syllabus Topic Details A Questions in Class Questions for Homework

Intro 1 - Exam Day Techniques

Intro 1 - Syllabus Overview

- Examiner

Webinar

August 2014

- - -

1 1

6. Special Audits & Other Assurance Engagements

- Group Audits:

Notes - N.B – Article

2011 – An Approach to Exam Questions on Audit of Groups

- ACCA Article

on Group Audits (and 2011 ACCA Article on Moodle) – Place Both on moodle

- Q1 Aug 2011 Do

full question with class (Group Audits)

- Q5 June 2013 ACCA P7 (Group Audits) – “Poodle”



2

2 2 Read ISA 540 - - -

2 3 6. Special Audits & Other Assurance Engagements

- Other Types of Historical Financial Assurance Engagements

- - -


- Future Oriented Information (Including M13)

- Q1 (d) April 2011 – Accountants Report on Profit Forecasts (M13) –

-


- Other Miscellaneous Technical Statements (M9)

- - -


- Other Miscellaneous Technical Statements – M21

- - -


- Other Miscellaneous Technical Statements – M22

- - -

2 8 6. Special Audits - Other - - -



3

& Other Assurance Engagements

Miscellaneous Technical Statements – M32


- Handout M46 - - -

2 10 - 6. Special Audits & Other Assurance Engagements

- M 47


- M45 - Grant Claims


- Standards for Investment Reporting 1000 (Audit of Investment Circular)


Not for Profit Audits Q3 Aug 07 (As contained in the Notes) – Good Question (Not For Profit Entity/Audit Committee)



4


ISA 510 – Initial Audit Engagements (Opening Balances)


Interim Financial Statements


Value for Money Audits


Other Types of Audit


Practice Statement – Management Commentary December 2010 –

3 19 - Audit of Charities – A301

3 20 - 7. Corporate Governance

UK Corporate Governance Code

Q2 (b) April 2012 (Corporate Governance – –



5

Q4 F8 Dec 2011 - Corporate Governance–


Audit Committees - Audit

Committees Article – Oct 2014 - Chartered Magazine

-


Key Concepts in Governance


Anti Money Laundering

4 24 - 4. Risk Assessment & Audit Process

Letter of Engagement (ISA 210)


THE STRATEGIC DESIGN AND PLANNING OF AN AUDIT AND KNOWLEDGE OF THE CLIENTS BUSINESS

4 26 - 4. Risk Assessment &

THE REVIEW OF FINANCIAL

Reference Q1 (B)

August 2014 (Use of



6

Audit Process STATEMENTS TO INCLUDE ANALYSIS AND CRTICAL ASSESSMENT – Analytical Procedures!

Analytical

Procedures – Audit

Planning) -


Audit Risk

“Deirdre Kiely

Article –

Accountancy Plus

September 2012”

“John McCarthy

Article –

Accountancy Plus

September 2012”

“John McCarthy

Article” – Planning

an Audit

Assignment - June

2009

Reference 2010

“Audit Planning

Article” on Moodle

Audit Risk V

Q1 (a) (i) August

2012 –

Identification and

Discussion of Major

Audit Risks. – Work

Through

- Homework 2: Q1 August 2013 (a to d) – Business Risk/Audit Planning – Overview with Class



7

Business Risk (See

Ger Long Article

2008


Materiality Engagemen

t &

Performanc

e

Materiality!

Q2 (a)

April 2013


QUAILTY CONTROL AND RECORDING OF THE AUDIT (ISA 220 and ISA 230)

Practice Note 26 –

Appendix B – Put

on Moodle - Page

34 onwards

ISA 230 - Q2 (c) April 2011 ; Good Question -


Consideration of Laws and Regulations in an Audit of Financial Statements



8


Use of Experts (ISA 620)


ISA 240 - FRAUD Q4 April 2013 (ISA 240) Read part (a) and do part (b) with class


Audit and Review of Accounting Estimates – ISA 540


ISA 550 – Audit of Related Parties


- Audit Risk v Business Risk

- See Ger Long

Article 2008

Homework 3: Q1 April 2012 (a) (i) (ii) Audit Risk


- SIC 32 on

Website Costs

to Capitalise

6 - Place into “Additional Worked Examples” Section

- Q1 August 2013 (a to d) – Business Risk/Audit Planning



9

6 - Place into “Additional Worked Examples” Section

- “Oak Plc” ….ACCA P7 Q1 Dec 11

7 37 - 3. Internal Controls & Financial Systems

- Control Activities/Control Environment


- Test of Control v Substantive Tests


- Ascertaining and Understanding Internal Control Systems


- Weaknesses of Internal Control Systems in respect of Fraud

7 41 - 3. Internal

Controls &

Financial

Systems

- Internal Control – Sales Cycle

7 42 - 3. Internal

Controls &

Financial

Systems

- Internal Control – Purchases Cycle



10


- Internal Control – Capital Expenditure

- Q1 (a) April 2014 - Capital Expenditure System (Excellent Question)

-

- Homework 4: P1 Auditing Aug 2013 – Capital Expenditure System – Good Question


- Internal Control - Payroll

ACCA F8 Q1 June 2014 – Payroll Internal Control System

8 45 - 3. Internal

Controls &

Financial

Systems

- Internal Control – Inventory System

- Smoothbrush – Inventory Cycle (From Lecture Notes) (c) –

Q1 April 2013 (a,b,d, e (i) ) – Inventory System –

8 46 - - 3. Internal

Controls &

Financial

Systems

- Internal Control – Cash System

Shiny Happy Windows (From Lecture Notes) – Page 222 Part 1 (b)

9 47 3. Internal Controls & Financial Systems

- Computers In Auditing

-

Q5 (c) April 2012 (CAATS) –

Q3 (A, B) Aug 2014 -



11

Q6 August 2012 –

11 47A 3. Internal Controls and Financial Systems

- INTERNAL AUDIT –

Q1 April 2013 (e) (iii) –

11 47 B 3. Internal Controls and Financial Systems

- A 308 – Guidance for Internal Auditors –

11 47C 3. Internal Controls and Financial Systems

- A 301 – Charities –

9 48 4. Risk Assessment & Audit Process

- Sample Audit Engagement Letter (June 2015)

- Audit Planning Letter (CPA Website)

- Availing of the Audit Exemption Guidance 2015 Article

- Audit Findings Letter

Q2 (A) (B) August 2013



12

9 49 4. Risk Assessment & Audit Process

- The Evalaution and Testing of Control Procedures and Audit Evidence: Substantive Tests!!! – Overview of the Assertions

-

9 4. Risk Assessment & Audit Process

- Substantive – Non Current Assets - Questions to Go Through - Place into “Additional Worked Examples” Section

- Q2 (A) & (B) Aug 2014 – Non Current Assets and Provisions – Go Through with Class - Q1 April 2012 (c) – Good Question – Audit Planning/Evidence/Non Current Assets Question –


- Questions to Go Through - Place into

- - Q3 April 2012 – Unrecorded Liabilities –



13

“Additional Worked Examples” Section

Good Question


- Place into “Additional Worked Examples” Section

- Q1 (B) (II) Aug 2012 – Good Question on Substantive Testing of Receivables


- Q1 Aug 2013 (e) – Substantive Testing Redundancy Payments –

10 - MOCK EXAM - MOCK EXAM !!

MOCK EXAM !!

11 50 5. Reporting - ISA 570 – Audit Of Going Concern

Going Concern Article (ICAI Magazine Feb 2009 (Read

- - Q4 Aug 2011 – Going Concern –



14

through with Class) & CPA Accty Plus Sept 2012 and ICAI Mag Dec 2014

11 51 5. Reporting - ISA 560 – Subsequent Events

11 52 5. Reporting - ISA 580 – Written Representation -

Tutorial Question: Greenfields Co (As contained in the P2 Manual ISA 580 notes) – Good Question –

11 53 5. Reporting - Other Items at Overall Review Stage

- ISA 450

11 54 - 5. Reporting - Audit Reporting

- Use the Sept 2014 Example of an

Q3 (B) August 2014 – and then Read Part A –



15

Auditors Report as Per ISA 700 -

- - - - - …then go

through the October 2012 Compendium Examples

- Go Through ISA 700&IAS 705 &ISA 706

- Refer class to Following Documents on Moodle:

- Refer Class to the Following: Audit of Opening Balances – ISA 510

- ISA 610, 620

- Refer to IFAC Audit Guide on on Moodle –



16

See Page 182 of Volume 2 for ISA 265 application to a case study

- ISA 200, 260 Revised Oct 2012(Seperate Handout), 260V265, 265, 320, 330, 450, 500, ISQC 1 –

12 55 1.Legal & Regulatory Environment

- Irish Company

Legislation Summary – COMPANIES ACT 2014

- Q4 (A) April 2014 on Money Laundering

-

12 56 2. Ethics - Ethics Lecture

Notes

- -Q3 (C) April

2014 –

-



17

Put Ethics for

Accountants

Article on Moodle

Q3(c) April 2011

(Rock Shore &

Co.) –

Mar 11 (Friday)

- REVISION

- Auditing Acryomns

- Questions - Return Mock

Exams

- Ethics – See

Topic 56 – Do a One Pager!

- Audit Planning – One Pager & Audit Risk V Business Risk (See Topic 35 as already uploaded to Moodle)

Q1 © April 2015 ACCA F8 Q3 Dec 2012 – Audit Planning – Good Question – Go through part (a) and (b) with class



18

Q1 August 2014 (b) (Part B already covered in Topic 26) (c) & (e) – CPA P2 Audit (Planning, Business Risk) - - Q1 Dec 2010

P7 (Business Risk & Financial Statement Risk – Good Question) – Handout and read through – Excellent Question

Mar 12 (Full Day)

Group Audits: Read Examiner HANDOUT on Group Auditing 2011 then (This is already on Moodle Under Section 6)…

ACCA P7 Dec 2013 – Q1 – Group Audit – Excellent Question –



19

Internal Controls

Why?? (REC) and SOAP SPAM and Weakness/Impact (REC) / Suggest Control/Test of Control….

Substantive – One Pager – 2 starting Audit Procedures for Account Balances and One for Classes of Transactions…then work from the Assertions

Q2 Dec 2012 P7 (Group Audits – Refer class to Q1 April 2013 (Internal Controls – Covered in Topic 45 ); Go through Q5 ACCA F8 Dec 2014 Q3 April 2014 (part a and b – Substantive) - Good Question –AND Q2 (A) (B) August 2014…



20

Overall Review Stage - One Pager

- Q3 Aug (c)

2011 (Planning/Trade Receivables)

- Q1 Aug 2013

(e) – Substantive Testing Redundancy Payments

Q5 F8 JUNE 2012 – Going Concern – Q2 April 09 – ISA 560 (Subsq Events) Good Question – Q3 Aug 2013 – Written Representations –Refer to Topic 52



21

Audit Reporting – Quick One PAGER, then PEQ

Audit Reporting – PEQ’s: Read Q3 Aug 2014 (Refer to Topic 54 – already covered); Read Q2 (B) Aug 2014; Refer class to Q2 April 2014; Q4 of Feb 2014 Mock Exam (Quality Control, Reporting, Ethics) – - Refer class to Q2 (a) April 2011 – Audit Reporting



22

- Audit & Insolvency Article - ACCA 2011 Article–

- Clarity Auditing

Standards Article - 2011 Article –

- Completing the

Audit Acca Article

- Exam Day

Techniques Handout and – Handout Examiner Article Feb 2013

- Examiner

Webinar August

2014 – This is

really NB – Tell

Students of This



23

-

13 57

8. Current Issues – Do a Separate Recording (Advise Students to Watch Current Issues Webinar)

- Go Through

Examiner

Article FEB

2016 on

Analytical

Procedures

Companies Act 2014 – Refer to Article in Chartered Accts Ireland by Daniel o Donovan - AUGUST 2015 (As saved in “Articles”)

Really N.B. EU Audit REFORM - Audit Article – Audit



24

Rotation – Oct 2014 – Accountancy Ireland -

Really N.B. “Game Changer” Article – Audit Rotation – June 2014 – Accountancy Ireland – read Also Q1 (A) April 2014

- P2 Examiner Article (March 2014) on Audit Rotation – Excellent Article for Opinions on the NEW EU rules on Audit Firm



25

Rotation…

- P2 Examiner Article (Feb 2012) on Long Association – Go Through

Really N.B. CSR

and “Greenwashing” – Oct 2014 – Accountancy Ireland – See Q2 April 2015

- P1 Article on Materiality - 2012 – go through

- P1 Article on

Internal

Controls –



26

- Examiner Article July 2015 – Services Provided by Accountants in Practice –– Go Through

- Credit

Unions Article – 2010 Article

10 Steps to

Improve Your

Audit Planning

Process - “Accty

Plus Dec 2015

Article” –

Dec 2014 – ICAI

Article on Going

Concern –



27

Handout

“TESCO

WINDOW

DRESSING

ARTICLE”