Ausit and assurance The following tcenario relates to quevtions 610 Analytical procedures bisclosures During the year, Vinno Co revafued its head office and as part of vour review, vou are cansidefing the detail which is disclased Disclosures in the property, plant and equipment note in the draft financial statements. Uncorrected misstatements Your review also includes an assessment of uncorrected misstatements. These have been recorded by The adjustment for faulty goods listed as an uncorrected misstatement above relates to an entire batch Faulty goods of shoes, Which was produced on 12 September 20x8. The audit work concluded that the cost of this inventory exceeded its net realisable value by $2.9m. The directors dispute the audit team's figures and believe that the realisable value of the inventory still exceeds its cost. 6. Which of the following would form part of the auditor's overall review of the financial statements? (1) Establishing whether the pre-conditions for an audit are present (2) Assessing whether the information and explanations obtained during the audit are adequately (3) Performing a detailed review of the audit working papers to ensure the work has been properly reflected performed (4) Reviewing the adequacy of the disclosure of accounting policies A. 1 and 2 B. 3 and 4 C. 1 and 3 D. 2 and 4 . Ausit and assurance The following tcenario relates to quevtions 610 Analytical procedures bisclosures During the year, Vinno Co revafued its head office and as part of vour review, vou are cansidefing the detail which is disclased Disclosures in the property, plant and equipment note in the draft financial statements. Uncorrected misstatements Your review also includes an assessment of uncorrected misstatements. These have been recorded by The adjustment for faulty goods listed as an uncorrected misstatement above relates to an entire batch Faulty goods of shoes, Which was produced on 12 September 20x8. The audit work concluded that the cost of this inventory exceeded its net realisable value by $2.9m. The directors dispute the audit team's figures and believe that the realisable value of the inventory still exceeds its cost. 6. Which of the following would form part of the auditor's overall review of the financial statements? (1) Establishing whether the pre-conditions for an audit are present (2) Assessing whether the information and explanations obtained during the audit are adequately (3) Performing a detailed review of the audit working papers to ensure the work has been properly reflected performed (4) Reviewing the adequacy of the disclosure of accounting policies A. 1 and 2 B. 3 and 4 C. 1 and 3 D. 2 and 4
