ATC
INTERNATIONAL
ACCA
PAPER F8
AUDIT AND ASSURANCE (INTERNATIONAL)
Teddington TW11 8ST United Kingdom.
Editorial material Copyright Accountancy Tuition Centre (International Holdings) Limited, 2008.
All rights reserved. No part of this training material may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without permission in writing from the Accountancy Tuition Centre Limited.
STUDY QUESTION BANK – AUDIT AND ASSURANCE (F8)
CONTENTS
Question Page Answer Marks Date worked
REGULATORY FRAMEWORK
1 International auditing 1 1001 12
2 Audit committee 1 1002 20
3 Fraud and error (ACCA D04) 1 1005 20
4 ISA 200 2 1007 20
PROFESSIONAL ETHICS AND CODES OF CONDUCT
5 Professional ethics (ACCA PP01) 3 1009 20
AUDIT PLANNING (AUDIT RISK, ANALYTICAL REVIEW, MATERIALITY)
12 Norbert 7 1026 14
13 Audit risk 7 1028 20
14 Analytcal procedures and materiality 8 1033 20
15 Planning analytical review (ACCA J03) 9 1034 20
INTERNAL CONTROL AND ASSESSING CONTROL EFFECTIVENESS
16 Knits 10 1037 20
INTERNAL AUDIT AND RISK MANAGEMENT
23 Internal and external auditors (ACCA D01) 16 1055 20
24 Risk managemnet (ACCA Dec02) 16 1057 20
25 Roxy Hotel (ACCA PP01) 17 1059 20
AUDIT EVIDENCE
27 Sources of audit evidence 19 1064 15
28 Basis of valuation 19 1066 20
29 Methods of evidence gathering (ACCA J04) 20 1069 20
ANALYTICAL PROCEDURES AND AUDIT SAMPLING
STUDY QUESTION BANK – AUDIT AND ASSURANCE (F8)
CONTENTS
Question Page Answer Marks Date worked
LOANS, BANK & CASH
44 Cromwell 28 1102 20
45 Bon Voyage 29 1104 15
TRADE PAYABLES AND ACCRUED EXPENSES
46 Cosmos 30 1106 20
FORMING AN AUDIT JUDGEMENT
52 Calva (ACCA D03) 34 1120 20
53 OilRakers (ACCA D05) 34 1122 20
THE AUDITOR’S REPORT ON FINANCIAL STATEMENTS
The IASB reissued IAS 1 ‘Presentation of Financial Statements’ in September 2007. Amendments to the old IAS 1 are mainly to presentation and terminology and have been reflected throughout these questions.
Although IAS 1 does not become effective until periods on or after 1 January 2009, earlier adoption is permitted. ACCA operates a six month rule in its examinations based on issue date, whereby accounting standards will not be examined until six months have passed from their date of issue. Therefore the revised IAS 1 falls to be examined from the June 2008 examinations.
Terminology has therefore been changed throughout the F8 materials. The main changes can be summarised as follows:
Balance sheet ⇒ Statement of financial position
Balance sheet date ⇒ end of the reporting period (note that end of the reporting period may also be
referred to as the “year end” within the study system and question bank)
Income statement ⇒ Statement of comprehensive income (but see below)
Cash flow statement ⇒ Statement of cash flows (IAS 7 is renamed)
Events after the balance sheet date ⇒ Events after the reporting period (IAS 10 is renamed)
The Statement of Comprehensive Income basically consists of two elements – an income statement (the same as the old IAS 1 format) plus other comprehensive income comprising, for example, gains on
revaluations, cash-flow hedges, translation of foreign operations and actuarial gains (all of which are
still analysed within a statement of changes in equity).
