University Of South Africa AUE 3702| Substantive Procedures And Finalizing An Audit Semester 1 & 2
University of South Africa AUE 3702| Substantive Procedures and Finalizing an Audit Semester 1 & 2
Exam (elaborations)
University of South Africa AUE 3702| Substantive Procedures and Finalizing an Audit Semester 1 & 2
8 views 0 purchase
Course
University of South Africa AUE 3702| Substantive Procedures and Finalizing an Audit Semester 1 & 2
Institution
University Of South Africa AUE 3702| Substantive Procedures And Finalizing An Audit Semester 1 & 2
University of South Africa AUE 3702| Substantive Procedures and Finalizing an Audit Semester 1 & 2ORIENTATION AND LEARNING APPROACH iv TOPIC 1: Audit evidence 1 LEARNING UNIT 1.1: The theory of audit evidence (ISA 500) 2 LEARNING UNIT 1.2: Relying on information produced by a 7 management’s exper...
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
AUE3702/MO001/4/2017
70526893
IMPORTANT INFORMATION:
Please register on myUnisa, activate your myLife e-mail address and make
sure that you have regular access to the myUnisa module website,
AUE3702-2017.
, AUE3702/MO001/4/2017
CONTENTS
Page
ORIENTATION AND LEARNING APPROACH iv
TOPIC 1: Audit evidence 1
LEARNING UNIT 1.1: The theory of audit evidence (ISA 500) 2
LEARNING UNIT 1.2: Relying on information produced by a 7
management’s expert (ISA 500)
LEARNING UNIT 1.3: Using the work of an auditor’s expert (ISA 620) 10
LEARNING UNIT 1.4: Using the work of internal auditors (ISA 610) 13
LEARNING UNIT 1.5: Initial engagements: opening balances (ISA 16
510)
LEARNING UNIT 1.6: Accounting estimates including fair value 22
accounting estimates, and related disclosures
(ISA 540)
LEARNING UNIT 1.7: Audit sampling (ISA 530) 26
LEARNING UNIT 1.8: External confirmations (ISA 505) 30
LEARNING UNIT 1.9: Written representations (ISA 580) 34
TOPIC 2: Substantive procedures: the concepts 37
LEARNING UNIT 2.1 Principles in formulating substantive 38
procedures
LEARNING UNIT 2.2 Substantive procedures with assistance of 52
CAATs
LEARNING UNIT 2.3 Analytical procedures 56
TOPIC 3: Formulating the substantive procedures for the cycles 61
LEARNING UNIT 3.1 Revenue and receipts cycle 62
LEARNING UNIT 3.2 Acquisitions and payments cycle 68
LEARNING UNIT 3.3 Inventory and production cycle 74
LEARNING UNIT 3.4 Payroll and personnel cycle 84
LEARNING UNIT 3.5 Finance and investment cycle 92
TOPIC 4: Evaluating, concluding and reporting 99
LEARNING UNIT 4.1 Evaluation of misstatements identified during 101
the audit (ISA 450)
LEARNING UNIT 4.2 Related parties (ISA 550) 104
LEARNING UNIT 4.3 Subsequent events 108
LEARNING UNIT 4.4 Provisions and contingent liabilities 117
LEARNING UNIT 4.5 Going concern and factual insolvency 121
LEARNING UNIT 4.6 Audit report 127
iii
, Orientation and learning approach
Welcome to the module Substantive Procedures and Finalising an Audit (AUE3702). We hope
that you will enjoy this module. By “enjoy” I mean that you approach the module with a positive
mind set – not just to pass an examination – but rather to gain insight into and knowledge on the
subject of auditing. Besides, the country needs knowledgeable, critical thinking auditors. In
addition you need to compete internationally, because we are part of the global economy. This
is your opportunity to achieve just that.
However, a prestigious qualification like Chartered Accountant CA(SA), Registered Auditor (RA)
or Association of Chartered Certified Accountants (ACCA) requires sacrifice, implying
commitment and consistent hard work. This module will stretch and challenge you, so
remember: “Never, never, never give up” (Winston Churchill).
In this module we are mainly going to focus on the concepts of audit evidence, the gathering of
evidence through substantive procedures (stage 3) and evaluating, concluding and reporting
(stage 4). Remember, you covered stage 1 and 2 in previous auditing modules. The topics that
we are going to cover are set out as follows:
Topic 1: Audit evidence
Topic 2: Substantive procedures: the concepts
Topic 3: Formulating the substantive procedures for the cycles
Topic 4: Evaluating, concluding and reporting
iv
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QuizMerchant. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
