Acca aaa s21 Notes

September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
69

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
(7)
The company changed over from its old to its new IT system part-way through the year. The 
change-over seemed to go smoothy.
‣
Disruption at the time of changeover and for some time afterwards as employees get used to 
the new system.
‣
There are two accounting systems to be considered. One before the change and one after the 
change [not really a business risk, but the auditors will probably have to almost perform two 
audits and also look carefully at the transfer of balances between the old and new systems.]
September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
70

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
AUDIT EVIDENCE
Chapter 13
AUDIT EVIDENCE
1. For what is audit evidence needed? 
1.1. Amounts and compliance with accounting standards
Auditors aim to say, with reasonable assurance that the financial statements do not contain material 
misstatements. If you remember, we have already emphasised that this means that the financial 
statements must show figures which are substantially true (think sufficiently accurate) and be 
presented fairly. To avoid misstatements:
๏
the calculation of the amounts 
๏
their presentation and 
๏
disclosure 
must comply with the relevant accounting standard(s). A simple example of a misstatement through 
incorrect treatment is that of a bank loan repayable in 9 months but which is classified as a long-term 
liability. If a 5 year loan is repayable by instalments, the liability has to be split into current and non-
current parts .
If the auditor is willing to give an assurance about the financial statements then the auditor needs 
evidence that supports both the amount and its proper treatment under the accounting standards.
Evidence should be NEAT! Auditors: