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Audit Opinion related question Clarity; Details (standards, amounts, scope); Structure (is heading on the right place?) of opinion and its Consistency (starts like except for and finishes like adverse opinion); 3.4. Types of appropriate opinions. This depends on evidences (sufficient, mistake material and pervasive?); 3.5. Prior year opinion. 4. 4.1. 4.2. 4.3. 4.4. Audit Matters (audit evidence/process) question Materiality; Standard breached (IFRS, recognition, valuation criteria etc.); Risks of misstatement; Impact on Audit Opinion;
Sources of evidence - DADA3: Document Asset Director (interview/representations) Accounting record 3rd Party
Procedures AE IOU: Analytical (plausibility/predictability) Enquiry & Confirm (written/verbal) Inspection (documents/assets) Observation (assets, process) RecalcUlation (opening balance check)
Elements of evidence: 5.1. General: budgets/plans, accounting policy; 5.2. Calculations: rates, models, risks, probabilities, impairment reviews, useful lives, assumptions reasonableness explanation; 5.3. Disclosure: draft notes; 5.4. Documents types: 5.4.1. Bank statements, invoice, bill, dispatch/delivery note; 5.4.2. Contract, agreement, insurance policy, title deed; 5.4.3. Claim litigation copy, insurance claim; 5.4.4. Log books, time-sheets; 5.4.5. Minutes, orders, policies; 5.4.6. Correspondence, letters; 5.4.7. Tax returns; 5.5. Reconciliations (with tax authority, debtor), confirmations; 5.6. Record of discussion, interview, talk with employees; 5.7. Valuation reports, surveys; 5.8. Breakdowns (check for misclassification), samples. Golden Rule: Your answer should be always close to the question scenario: (1) the answer should be relevant; (2) the question text contains hint for answer. You are welcomed to share your tips for audit exams. Good Luck!