Wednesday, January 11, 2012

Re: [ vuZs.net ] ACC311 answer required


Internal sources of audit evidence for an entity includes the following EXCEPT:
(a) Associated companies of the entity
(b)Accounting systems, records and documents
(c)Non-financial data and records 
(d)Management representation and discussion 


Associated company is not internal source.

An "Associated Company" is an entity in which the Company has significant influence, but not a controlling interest, over the operating and financial management policy decisions of the entity. Associated Companies are accounted for using the equity method. Significant influence is generally presumed when the Company holds between 20 percent and 50 percent of the voting rights. 


On Wed, Jan 11, 2012 at 10:25 PM, fbvdh 1 <zeeshanmustafa1@live.com> wrote:

ACC311 answer with logic required
Internal sources of audit evidence for an entity includes the following EXCEPT:
(a) Associated companies of the entity
(b)Accounting systems, records and documents
(c)Non-financial data and records
(d)Management representation and discussion

During tests of control procedure its design can easily tested with the help of:
(a) ICQs & Walk through tests
(b) ICQs and judgment sample
(c)ICQs and random smaple
(d)ICQs and ICEC

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Regards, 
Misbah Yousuf

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