Audit of Financial Statements

AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

Question

Your client, Picturescope Limited, intends to produce a motion picture titled “Naija Power”. The development costs before presentation to investors for financing the production is estimated to be N15 million.

Required:

a. As the assurance provider, assess the situation to confirm that the amount spent so far can be recognised as development costs within the provisions of IAS 38 – Intangible Assets.
(6 Marks)

b. Explain the audit tests that you would perform in respect of the development costs expended so far.
(9 Marks)

Answer

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Tags: Audit Procedures, Development Costs, IAS 38, Recognition Criteria
Level: Level 2

Topic: Audit of Financial Statements

AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

Question

The Nigerian Standard of Auditing (NSA 1) and International Standard on Auditing (ISA 200) deal with the objective and general principles governing an audit of financial statements. It sets out the overall objectives of the independent auditor and explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives.

Required:

a) Explain the term “Audit of the financial statement”.
(4 Marks)

b) Describe the overall objectives of the independent auditor in conducting the audit of financial statements in accordance with NSA 1 and ISA 200.
(6 Marks)

c) Sections 360 and 363 of the Companies and Allied Matters Act (CAMA) CAP 20 LFN 2004 stipulate the rights of the independent auditors in the conduct of the statutory audit. State these rights.
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit of Financial Statements, Auditor's Rights, CAMA, ISA 200, NSA 1
Level: Level 2

Topic: Audit of Financial Statements
Series: NOV 2016

AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

Question

Required:

a. As the assurance provider, assess the situation to confirm that the amount spent so far can be recognised as development costs within the provisions of IAS 38 – Intangible Assets.
(6 Marks)

b. Explain the audit tests that you would perform in respect of the development costs expended so far.
(9 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Development Costs, IAS 38, Recognition Criteria
Level: Level 2

Topic: Audit of Financial Statements

AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

Question

Required:

a) Explain the term “Audit of the financial statement”.
(4 Marks)

b) Describe the overall objectives of the independent auditor in conducting the audit of financial statements in accordance with NSA 1 and ISA 200.
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit of Financial Statements, Auditor's Rights, CAMA, ISA 200, NSA 1
Level: Level 2

Topic: Audit of Financial Statements
Series: NOV 2016

Topic: Audit of Financial Statements

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AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

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Topic: Audit of Financial Statements

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AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

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AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

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AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements

Assessing development costs under IAS 38 and audit tests for verification.

You're reporting an error for "AA – Nov 2023 – L2 – Q6 – Audit of Financial Statements"

AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements

This question covers the definition of an audit, the overall objectives of an independent auditor, and the rights of auditors as per Nigerian law.

You're reporting an error for "AA – Nov 2016 – L2 – Q5 – Audit of Financial Statements"

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