Champions of Audit

When assessing for independence, what period should we consider for non-audit fees for a 31/12/2022 year end.

• 01/01/2022 - 31/12/2022

• 01/01/2022 - 31/12/2023

• 01/01/2022 - Expected date of signing

• 01/01/2023 - 31/12/2023

Answer explanation

We must always consider non audit fees from the first day of the accounting period, to the expected day of signing!

Which of the following items would we include in the fees reconciliation within the independence section?

• Fees per Audit Plan

• Fees per ES5

• Fees per Audit Programme Document

• Fees per prior year Audit Findings Document

Where would you find the list of all directors who have served in the current year, to include within your organisation structure toolbox?

(a)  

Which system/application do you use to create the engagement letter?

(a)  

Which of the following TWO would indicate you need to consult with APS on your revenue ADA template?

• Ship and bill revenue

• Contract revenue which is recognised over time

• International customers

• New customers in the year

Which of the following are the two key benchmarks for determining materiality for a TRADING ENTITY?

• PBT

• Total assets

• EBITDA

• Revenue

Which of the following TWO factors would indicate the need to lower your PM % threshold

• Lots of prior year misstatements

• Significant estimates with high estimation uncertainty

• Unstable economy

• Significant external interest eg. bankers and regulators

Answer explanation

Performance materiality is impacted by INTERNAL factors.

Whereas materiality is impacted by EXTERNAL factors

What % of the chosen benchmark(s) would indicate a component is INDIVIDUALLY FINANCIALLY SIGNIFICANT to the group?

• 5%

• 10%

• 15%

• 25%

When performing a Group audit, what % coverage is required for a significant risk area.

• 55%

• 65%

• 70%

• 75%

Within the estimates section, which estimates require the mandatory estimates template to be completed

• All estimates

• Only significant estimates