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Suggested answer May 2018 - Audit and Assurance

Hello Everyone, Welcome to by Blog, here under are my suggested answers for audit assurance exam for IPCC/Inter Old course paper happened on 13th May 2018.

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Comments

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    2. bro.. how much marks will be awarded in amalgamation if i have done mistake computation in share calculation between two company, even when balance sheet got tallied

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1(a) Incorrect -  If law or regulation prescribes in sufficient detail the terms of the audit engagement referred, the auditor need not record them in a written agreement, except for the fact that such law or regulation applies and that management acknowledges and understands its responsibilities as set out 1(b) Incorrect - There should be a periodic review, to assess whether the same continues to be adequate for obtaining requisite knowledge and evidence about the transaction. 1(c) Incorrect - Revenue is recognised when right to receive the payment is established 1(d) Incorrect - Every LLP is also required to submit Statement of Account and Solvency in Form 8 which shall be filed within a period of 30 days from the end of 6 months of the financial year to which the Statement of Account and Solvency relates. 1(e) Incorrect - Should be based on record of recovery. 1(f) Correct - The audit plan is more detailed than the overall audit strategy that includes the NTE of audit proce...