Question 1a
Marking Guide

Evaluation of audit risks and other matters to be considered

½ mark for identification (to a maximum of 5 marks) and up to 1½ further marks for  evaluation and ½ mark for correct reference to relevant IAS/IFRS (max 1 mark)

– Classification of non-controlling interests (IAS 28)
 – Auditors lack knowledge of activities of non-controlling interests
 – Bonus and potential earnings management
 – Change of accounting estimates (IAS 8)
 – Lack of group finance director
 – Capitalisation of dismantling costs (IAS 16) 
 – Provision – discounting and finance charge (IAS 37)
 – Deferral of grant income (IAS 20)
 – Potential provision or contingent liability (IAS 37)
 – Mid-year acquisition
 – Goodwill on acquisition – subjective (IFRS 3)
 – Retranslation of Brass Co financial statements (IAS 21)
 – Retranslation of goodwill
 – Adjustments necessary to bring in line with group accounting policies
 – Intra-group transactions

Maximum marks 18

We use cookies to help make our website better. We'll assume you're OK with this if you continue. You can change your Cookie Settings any time.

Cookie SettingsAccept