ICAEW AA Chapter 7 Question and answers rated A+ 2024

ICAEW AA Chapter 7 Question and answers rated A+ 2024 ISA300 - planning audit - correct answer Time wasted doing wrong - inefficient Really important work might not be done at all- not prioritizing key work Wrong conclusion may be drawn Audit Strategy - correct answer Background information required to an effective audit- formulation of general strategy which considers materiality risk audit approach experts timing team budgets and deadlines of audit - guides the development of audit plan Audit plan - correct answer Detailed than strategy - sets out specific nature, timing, extends of audit procedures to be performed by engagement team to obtain sufficient and appropriate evidence Materiality ISA320 - correct answer Items material by quantity or quality Revenue: 1/2% - 1% Profit before tax: 5% - 10% Gross Assets: 1% - 2% Balance sheet/assets