Programme Overview
Auditors are required to audit financial statements in compliance with Singapore Standards on Auditing (SSA). These SSAs provide procedures and guidance on how auditors conduct audit of financial statements that give true and fair view. SSAs set out audit procedures on obtaining sufficient and appropriate audit evidence (SSA500), use of external confirmation procedures to obtain audit evidence (SSA505), use of substantive analytical procedures (SSA520), collecting audit evidence for accounting estimates and fair value measurement (SSA540) etc.
The collection of sufficient and appropriate audit evidence is directly dependent on auditor’s technical knowledge and understanding of SFRS for Small Entities (SE) that set out the principles of recognising and measuring assets and liabilities, income and expense, and equity. The Standard also lay down the principles of how information are presented fairly in the financial statements.
While the collection of auditing evidences required for the audit of financial statements prepared in accordance with FRS would largely be similar to the audit of financial statements prepared in accordance with SFRS for SE, there are however, differences in certain recognition and measurement requirements. One notable difference is that under FRS40 accounting for investment property is an accounting policy choice, but under Section 16 of SFRS for SE, investment property is required to be accounted for at fair value through profit or loss unless fair value cannot be measured reliably without undue cost or effort on an ongoing basis, therefore the focus of audit for investment property under SFRS for SE is to determine whether the conditions of undue cost or effort prevail.
Programme Objective
The objective of this seminar is to highlight the salient technical features of SFRS for SE that auditors should be aware when collecting sufficient and appropriate audit evidence in accordance with SSA.
The seminar will deal with the following salient features:
- Distinguishing the difference between technical and judgmental requirements of SFRS for SE
- Highlighting the technical requirements in the selected Sections in SFRS for SE that an auditor must be aware of
- Designing of audit programme to specific requirements of SFRS for SE
- Explaining the inherent audit risk of aggregating and offsetting assets and liability, income and expense
- Be aware of the audit risk when applying a Section in SFRS for SE in isolation to other Sections to a specific event, transaction and condition
- Honing the skills of integrating and linking the application of different Sections in SFRS for SE so that financial statements are presumed to be fairly presented
- Understanding the various measurement basis used in SFRS for SE and how to determine that sufficient appropriate audit evidence to support those measurements
- Understanding the recognition criteria for assets, liability income and expense
- Analyzing the inherent audit risk of using judgement in applying accounting policies and estimating uncertainty under SFRS for SE
- How to make audit judgement on whether to invoke “additional disclosures when necessary” to ensure fair presentation as required by Section 2 of SFRS for SE
Programme Outline
The essential
- Highlight the critical technical requirements of selected issues and Sections of SFRS for SE that auditors should consider when gathering audit evidence for:
- deciding undue cost or effort
- ensuring fair presentation of financial statements where SFRS for SE has significant reduced disclosure requirements
- Financial instruments
- Investment properties
- The potential reference to FRSs when SFRS for SE does not provide guidance
- Auditing of assets and liabilities to ensure compliance with SFRS for SE:
- Recognition criteria
- Debit – making audit judgement on when a debit should be recognised as an asset or expense
- Assets: Rights to resources in future period
- Expense: outflow of resources in current period
- Credit – making audit judgement on when a credit should be recognised as an income, a liability or an equity
- Liabilities: obligations to fulfill in future period
- Income: inflow of resources in current period
- Measurement requirements:
- Cost based: Historical cost and Amortised cost method
- Market determined value: Fair value
- Entity specific value: Value in use and Net realisable value
Covering selected SFRS for SE in the categories:
| 1 | Audit of Presentation and Disclosure of Main Financial Statements |
| 2 | Audit of Income - (Revenue) |
| 3 | Audit of Obligations – (Liabilities) |
| 4 | Audit of Assets (Including Impairments) |
| 5 | Audit of Financial Instruments |
| 6 | Audit of Substantial Investment Interest and Business Combinations |
| 7 | Audit of Various Technical Issues in IFRSs |
Training Methodology
- Lecture
- Practical case studies
- Interactive discussion
Closing Date for Registration
1 week before programme or until full enrolment
Intended For
A foundational to Intermediate programme for Finance and Audit professionals. Those who are keen on attending a practical course to gain an understanding on how SFRSs for SE can affect collection of audit evidence are welcome to attend.
Schedule & Fees
Testimonial
Funding
No funding Available!
Programme Facilitator(s)
Programme Overview
Auditors are required to audit financial statements in compliance with Singapore Standards on Auditing (SSA). These SSAs provide procedures and guidance on how auditors conduct audit of financial statements that give true and fair view. SSAs set out audit procedures on obtaining sufficient and appropriate audit evidence (SSA500), use of external confirmation procedures to obtain audit evidence (SSA505), use of substantive analytical procedures (SSA520), collecting audit evidence for accounting estimates and fair value measurement (SSA540) etc.
The collection of sufficient and appropriate audit evidence is directly dependent on auditor’s technical knowledge and understanding of SFRS for Small Entities (SE) that set out the principles of recognising and measuring assets and liabilities, income and expense, and equity. The Standard also lay down the principles of how information are presented fairly in the financial statements.
While the collection of auditing evidences required for the audit of financial statements prepared in accordance with FRS would largely be similar to the audit of financial statements prepared in accordance with SFRS for SE, there are however, differences in certain recognition and measurement requirements. One notable difference is that under FRS40 accounting for investment property is an accounting policy choice, but under Section 16 of SFRS for SE, investment property is required to be accounted for at fair value through profit or loss unless fair value cannot be measured reliably without undue cost or effort on an ongoing basis, therefore the focus of audit for investment property under SFRS for SE is to determine whether the conditions of undue cost or effort prevail.
Programme Objective
The objective of this seminar is to highlight the salient technical features of SFRS for SE that auditors should be aware when collecting sufficient and appropriate audit evidence in accordance with SSA.
The seminar will deal with the following salient features:
- Distinguishing the difference between technical and judgmental requirements of SFRS for SE
- Highlighting the technical requirements in the selected Sections in SFRS for SE that an auditor must be aware of
- Designing of audit programme to specific requirements of SFRS for SE
- Explaining the inherent audit risk of aggregating and offsetting assets and liability, income and expense
- Be aware of the audit risk when applying a Section in SFRS for SE in isolation to other Sections to a specific event, transaction and condition
- Honing the skills of integrating and linking the application of different Sections in SFRS for SE so that financial statements are presumed to be fairly presented
- Understanding the various measurement basis used in SFRS for SE and how to determine that sufficient appropriate audit evidence to support those measurements
- Understanding the recognition criteria for assets, liability income and expense
- Analyzing the inherent audit risk of using judgement in applying accounting policies and estimating uncertainty under SFRS for SE
- How to make audit judgement on whether to invoke “additional disclosures when necessary” to ensure fair presentation as required by Section 2 of SFRS for SE
Programme Outline
The essential
- Highlight the critical technical requirements of selected issues and Sections of SFRS for SE that auditors should consider when gathering audit evidence for:
- deciding undue cost or effort
- ensuring fair presentation of financial statements where SFRS for SE has significant reduced disclosure requirements
- Financial instruments
- Investment properties
- The potential reference to FRSs when SFRS for SE does not provide guidance
- Auditing of assets and liabilities to ensure compliance with SFRS for SE:
- Recognition criteria
- Debit – making audit judgement on when a debit should be recognised as an asset or expense
- Assets: Rights to resources in future period
- Expense: outflow of resources in current period
- Credit – making audit judgement on when a credit should be recognised as an income, a liability or an equity
- Liabilities: obligations to fulfill in future period
- Income: inflow of resources in current period
- Measurement requirements:
- Cost based: Historical cost and Amortised cost method
- Market determined value: Fair value
- Entity specific value: Value in use and Net realisable value
Covering selected SFRS for SE in the categories:
| 1 | Audit of Presentation and Disclosure of Main Financial Statements |
| 2 | Audit of Income - (Revenue) |
| 3 | Audit of Obligations – (Liabilities) |
| 4 | Audit of Assets (Including Impairments) |
| 5 | Audit of Financial Instruments |
| 6 | Audit of Substantial Investment Interest and Business Combinations |
| 7 | Audit of Various Technical Issues in IFRSs |
Training Methodology
- Lecture
- Practical case studies
- Interactive discussion
Closing Date for Registration
1 week before programme or until full enrolment
Intended For
A foundational to Intermediate programme for Finance and Audit professionals. Those who are keen on attending a practical course to gain an understanding on how SFRSs for SE can affect collection of audit evidence are welcome to attend.
Programme Facilitator(s)
