Relevance – NBC Institute

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

Question

The Auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

You are required to:

(a) Identify FIVE factors that an Auditor will consider in determining what constitutes sufficient audit evidence. (5 Marks)
(b) Explain FIVE principles that would assist the Auditor in assessing the reliability of audit evidence. (5 Marks)
(c) Explain FOUR principles that would assist the Auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

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Tags: Audit evidence, ISA 500, Relevance, Reliability, Sufficiency
Level: Level 2

Series: MAY 2017

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Required: a. Explain briefly THREE factors that an auditor will consider in determining what constitutes sufficient audit evidence. (6 Marks) b. Explain briefly TWO principles that would assist an auditor in assessing the reliability of the audit evidence. (4 Marks) c. Describe FOUR principles that would assist an auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

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Tags: Audit evidence, ISA 500, Relevance, Reliability, Substantive Testing
Level: Level 2

Topic: Audit evidence
Series: MAY 2018

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

Question

Explain the following qualitative characteristics of financial statements reported under IFRS and assess how they make the information very useful:

i. Relevance
ii. Comparability
iii. Understandability
iv. Faithful Representation

Answer

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Tags: Comparability, Conceptual Framework, Faithful Representation, Financial Reporting, IFRS, Qualitative Characteristics, Relevance, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAY 2018

FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information

Defines relevant financial information as per the Conceptual Framework.

Question

Relevant financial information, according to the Conceptual Framework is

A. Capable of making a difference in the decisions made by users
B. Incapable of making a difference in the decisions made by users
C. Capable of making a difference in the performance of the company
D. Incapable of making a difference in the performance of the company
E. Capable of multiple interpretations

Answer

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Tags: Decision Making, Financial Information, Relevance
Level: Level 1

Topic: Qualitative Characteristics of Useful Financial Information
Series: MAY 2017

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

Question

The IASB’s Conceptual Framework identifies, among others, the qualitative characteristics of relevance, faithful representation, comparability, and understandability.

Required:
Justify with an example each how the qualitative characteristics will apply to the treatment of tangible non-current assets. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Qualitative Characteristics, Relevance, Tangible Non-Current Assets, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: APR 2022

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

Question

The qualitative characteristics of relevance, faithful representation and comparability identified in the IASB’s Framework for the preparation and presentation of financial statements (Framework) are some of the attributes that make financial information useful to the various users of financial statements.

Required: Discuss the concept of relevance, faithful representation and comparability and how they make financial information useful.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Financial Reporting, Qualitative Characteristics, Relevance
Level: Level 3

Topic: Accounting Concepts
Series: MAY 2016

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

Question

Two key constraints on relevance and faithful representation in financial statements are:

Timeliness:
- Information must be provided in a timely manner to be useful. However, if there is a delay in reporting, the relevance of the information diminishes. To achieve timeliness, financial statements may need to be prepared before all details of a transaction or event are fully known, which can impair faithful representation. Hence, there is often a trade-off between timeliness and accuracy.
Cost vs. Benefit:
- There is a balance between the cost of providing financial information and the benefit derived from it. In some cases, the cost of collecting and reporting detailed information may outweigh the benefits to users. This constraint limits how much detail can be provided, potentially affecting both the relevance and faithfulness of the representation of financial data.

Answer

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Tags: Constraints, Faithful Representation, Financial Reporting, Relevance
Level: Level 3

Topic: Regulatory Framework and Ethics
Series: NOV 2016

FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework

Explain the key qualitative characteristics of useful accounting information according to the IASB's Conceptual Framework.

Question

Explain each of the following characteristics of useful accounting information:
i) Relevance (2 marks)
ii) Understandability (2 marks)
iii) Materiality (2 marks)
iv) Completeness (2 marks)
v) Neutrality (2 marks)

Answer

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Tags: Accounting Information, Completeness, Materiality, Neutrality, Qualitative Characteristics, Relevance, Understandability
Level: Level 1

Topic: The IASB’s Conceptual Framework
Series: NOV 2023

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

Question

The Auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

You are required to:

(a) Identify FIVE factors that an Auditor will consider in determining what constitutes sufficient audit evidence. (5 Marks)
(b) Explain FIVE principles that would assist the Auditor in assessing the reliability of audit evidence. (5 Marks)
(c) Explain FOUR principles that would assist the Auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Relevance, Reliability, Sufficiency
Level: Level 2

Series: MAY 2017

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Relevance, Reliability, Substantive Testing
Level: Level 2

Topic: Audit evidence
Series: MAY 2018

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

Question

Explain the following qualitative characteristics of financial statements reported under IFRS and assess how they make the information very useful:

i. Relevance
ii. Comparability
iii. Understandability
iv. Faithful Representation

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Conceptual Framework, Faithful Representation, Financial Reporting, IFRS, Qualitative Characteristics, Relevance, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAY 2018

FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information

Defines relevant financial information as per the Conceptual Framework.

Question

Relevant financial information, according to the Conceptual Framework is

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Financial Information, Relevance
Level: Level 1

Topic: Qualitative Characteristics of Useful Financial Information
Series: MAY 2017

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

Question

The IASB’s Conceptual Framework identifies, among others, the qualitative characteristics of relevance, faithful representation, comparability, and understandability.

Required:
Justify with an example each how the qualitative characteristics will apply to the treatment of tangible non-current assets. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Qualitative Characteristics, Relevance, Tangible Non-Current Assets, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: APR 2022

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

Question

Required: Discuss the concept of relevance, faithful representation and comparability and how they make financial information useful.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Financial Reporting, Qualitative Characteristics, Relevance
Level: Level 3

Topic: Accounting Concepts
Series: MAY 2016

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

Question

Two key constraints on relevance and faithful representation in financial statements are:

Timeliness:
- Information must be provided in a timely manner to be useful. However, if there is a delay in reporting, the relevance of the information diminishes. To achieve timeliness, financial statements may need to be prepared before all details of a transaction or event are fully known, which can impair faithful representation. Hence, there is often a trade-off between timeliness and accuracy.
Cost vs. Benefit:
- There is a balance between the cost of providing financial information and the benefit derived from it. In some cases, the cost of collecting and reporting detailed information may outweigh the benefits to users. This constraint limits how much detail can be provided, potentially affecting both the relevance and faithfulness of the representation of financial data.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Faithful Representation, Financial Reporting, Relevance
Level: Level 3

Topic: Regulatory Framework and Ethics
Series: NOV 2016

FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework

Explain the key qualitative characteristics of useful accounting information according to the IASB's Conceptual Framework.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Information, Completeness, Materiality, Neutrality, Qualitative Characteristics, Relevance, Understandability
Level: Level 1

Topic: The IASB’s Conceptual Framework
Series: NOV 2023

Question Tag: Relevance

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AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

You're reporting an error for "AA – May 2017 – L2 – SA – Q2 – Audit Evidence"

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

You're reporting an error for "AA – May 2018 – L2 – Q2 – Audit Evidence"

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

You're reporting an error for "FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting"

FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information

Defines relevant financial information as per the Conceptual Framework.

You're reporting an error for "FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information"

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

You're reporting an error for "FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting"

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

You're reporting an error for "CR – May 2016 – L3 – Q4b – Accounting and reporting concepts"

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

You're reporting an error for "CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics"

FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework

Explain the key qualitative characteristics of useful accounting information according to the IASB's Conceptual Framework.

You're reporting an error for "FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework"

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

You're reporting an error for "AA – May 2017 – L2 – SA – Q2 – Audit Evidence"

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

You're reporting an error for "AA – May 2018 – L2 – Q2 – Audit Evidence"

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

You're reporting an error for "FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting"

FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information

Defines relevant financial information as per the Conceptual Framework.

You're reporting an error for "FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information"

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

You're reporting an error for "FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting"

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

You're reporting an error for "CR – May 2016 – L3 – Q4b – Accounting and reporting concepts"

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

You're reporting an error for "CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics"

FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework

Explain the key qualitative characteristics of useful accounting information according to the IASB's Conceptual Framework.

You're reporting an error for "FA – Nov 2023 – L1 – Q1a – The IASB’s Conceptual Framework"

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