Acca aaa s21 Notes

Classes of transactions and events and 
related disclosures for the period 
under audit
Account balances and related 
disclosures at the period end
Occurrence
Existence
Completeness
Rights and obligations
Accuracy
Completeness
Cut-off
Accuracy
, valuation and allocation
Classification
Classification
Presentation
Presentation
Note the assertions that are the same (in 
red
) for both categories.
See Chapter 16 of our AA notes
if you need to revise the financial statement assertions.
September 2021 to June 2022 exams
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3. Gathering audit evidence
The procedures for obtaining audit evidence are:
๏
A
nalytical procedures (ratios, changes and comparatives)
๏
E
nquiry and confirmation. For example, asking the directors if they intend to sell or close down 
any part of the business.
๏
I
nspection. For example, the physical condition of inventories or non-current assets.
๏
O
bservation. For example, watch what staff do in the warehouse as deliveries are received.
๏
Recalc
U
lation and re-performance. For example, recalculate the profits recognised on a 
construction contract to ensure its accuracy.
You might remember that these five procedures can be remembered by the vowels, A, E, I, O and U.
4. Analytical procedures
Analytical procedures are used to evaluate plausible relationships between financial and non-financial 
data including, calculating ratios and then comparing the amounts and ratios to:
๏
Last year’s results
๏
Budgets
๏
Industry standards
Also the trends and changes in the company’s financial statements over time will be examined.