(ii) State the principal audit procedures to be performed on the consolidation schedule of

Question

(ii) State the principal audit procedures to be performed on the consolidation schedule of the Rosie Group.

(4 marks)

Answer 1

正确答案：
(ii) Audit procedures on the consolidation schedule of the Rosie Group:
– Agree correct extraction of individual company figures by reference to individual company audited financial
statements.
– Cast and cross cast all consolidation schedules.
– Recalculate all consolidation adjustments, including goodwill, elimination of pre acquisition reserves, cancellation
of intercompany balances, fair value adjustments and accounting policy adjustments.
– By reference to prior year audited consolidated accounts, agree accounting policies have been consistently applied.
– Agree brought down figures to prior year audited consolidated accounts and audit working papers (e.g. goodwill
figures for Timber Co and Ben Co, consolidated reserves).
– Agree that any post acquisition profits consolidated for Dylan Co arose since the date of acquisition by reference to
date of control passing per the purchase agreement.
– Reconcile opening and closing group reserves and agree reconciling items to group financial statements.