First Intuition Scotland

Well time for a CIMA post. It is time to start thinking about the next case study. We will hopefully manage to get some analysis and chat here as well as in the classroom. I must admit I am looking forward to these first few weeks. My first bit of advice is to try and experience or understand the product and related industry - so with the bath products a few sittings ago I spent a lot of time relaxing, and don't even get me started on the one relating to airports! Watch this space and we will discuss.

So we are nearly there. In fact this time next week F8 and P7 for ACCA should be in the bag. The question that I am getting asked most at the moment is what is the best tip you can offer for the audit papers?
Ironically, based on the feedback for the examiners I would have to offer the same advice for both papers :- please make sure you can tell the difference between 'Test of Controls' and 'Substantive tests' and if it asks for one then do it!!

The basics are test of controls is about making sure that the controls exist and are followed... control = signature on invoice to ensure that purchase is approved before payment,
therefore check invoices are signed by approved people. This will involve getting lists of authorised signatures etc.

Substantive tests are all about substantiating that what we want happen has occurred (regardless of the effectiveness of the controls),
so grab a variety of invoices (obviously, more technically based selections would be appropriate in the exam ;) ) and check that they are genuine purchases... not necessarily signed.

I hope that helps and best of luck next week.