STUDY GUIDE PART 1 ASSIGNMENT 01 SUBSTANTIVE PROCEDURES AND FINALISING AN AUDIT AUE3702/AUE303R Semesters 1 & 2

ORIENTATION AND LEARNING APPROACH iv TOPIC 1: Audit evidence 1 LEARNING UNIT 1.1: The theory of audit evidence (ISA 500) 2 LEARNING UNIT 1.2: Relying on information produced by a management’s expert (ISA 500) 7 LEARNING UNIT 1.3: Using the work of an auditor’s expert (ISA 620) 9 LEARNING UNIT 1.4: Using the work of internal auditors (ISA 610) 12 LEARNING UNIT 1.5: Initial engagements: opening balances (ISA 510) 15 LEARNING UNIT 1.6: Accounting estimates including fair value accounting estimates, and related disclosures (ISA 540) 21 LEARNING UNIT 1.7: Audit sampling (ISA 530) 25 LEARNING UNIT 1.8: External confirmations (ISA 505) 29 LEARNING UNIT 1.9: Written representations (ISA 580) 33 TOPIC 2: Substantive procedures: the concepts 36 LEARNING UNIT 2.10 Principles in formulating substantive procedures 37 LEARNING UNIT 2.11 Substantive procedures with assistance of CAATs 50 LEARNING UNIT 2.12 Analytical procedures 54 TOPIC 3: Formulating the substantive procedures for the cycles 59 LEARNING UNIT 3.13 Revenue and receipts cycle 60 LEARNING UNIT 3.14 Acquisitions and payments cycle 66 LEARNING UNIT 3.15 Inventory and production cycle 71 LEARNING UNIT 3.16 Payroll and personnel cycle 81 LEARNING UNIT 3.17 Finance and investment cycle 89 TOPIC 4: Evaluating, concluding and reporting 94 LEARNING UNIT 4.18 Evaluation of misstatements identified during the audit (ISA 450) 96 LEARNING UNIT 4.19 Related parties (ISA 550) 99 LEARNING UNIT 4.20 Subsequent events 103 LEARNING UNIT 4.21 Provisions and contingent liabilities 111 LEARNING UNIT 4.22 Going concern and factual insolvency 115 LEARNING UNIT 4.23 Audit report 122 This study source was downloaded by from CourseH on :14:31 GMT -05:00 This study resource was shared via CourseH 2 AUE3702/MO001 Orientation and learning approach Welcome to the module Substantive procedures and finalising an audit (AUE3702 and AUE30R). We hope that you will enjoy this module. By “enjoy” I mean that you approach the module with a positive mind set – not just to pass an examination – but rather to gain insight into and knowledge on the subject of auditing. Besides, the country needs knowledgeable, critical thinking auditors. In addition you need to compete internationally, because we are part of the global economy. This is your opportunity to achieve just tha