Page 60 - Day 2 - Planning an Audit

Exam tips

• Present your answer using assertions even when not required to do so. This will
enable you to generate points and would demonstrate to the marker that you
are able to make the link between the risk and the applicable assertion.

• Use ISA 315 par A124 when answering a question on risks at the assertion level.
This will enable you to address the correct assertion that is at risk for a class of
transaction, account balance and/or disclosure.

• When you are required to describe the risk at the assertion level, use the
information in the scenario. For instance, if you were to write “there is a risk
that trade receivables might be valued incorrectly”, your answer would be
incomplete as you did not link it to the information in the scenario. You would
have to link your answer to forex valuation and the impact of the provision for
credit losses when addressing the valuation assertion.

• When you are required to describe the risks at the assertion level, do not
confuse the required for an audit procedures question. The audit procedures
will be covered in TL 104.