Programme Overview

This course was formerly known as A162: Effect of FRS on Audit Evidence

Introduction
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. Various SSAs set out audit procedures on obtaining sufficient 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 appropriate audit evidence is directly dependent on auditor’s technical knowledge and understanding of Accounting Standards (FRS) that set out the principles of preparing financial statements. Over the years, accounting Standards are subject to numerous changes in fundamental concepts and technical contents. One of the most important features of changes to FRS over the years is the increasing use of judgement by management both in recognizing assets, liability, income and expense as well as increasing use of complex measurement methodology such as fair value and complex mathematical model to estimate a value to be included in financial statements.     
 
Programme Objectives
The objective of this seminar is to highlight the salient technical features of FRS that auditors should consider when collecting sufficient appropriate audit evidence in accordance with SSA.
 
The seminar will deal with the follow salient features:

• Distinguishing the difference between:
  • the audit of compliance with a technical requirement of a FRS and
  • the audit of assertions made by management on how they have exercise their judgement in order to comply with a FRS
• Highlighting the salient technical requirements in selected FRS may have an impact on the audit evidence collection process
• Designing of audit programme to specific requirements of FRS
• Explaining the fundamental audit risk when information is netted in financial statements
• Be aware of the audit risk when applying an FRS in isolation to a specific event and transaction
• Honing the skills of integrating and linking the application of different FRS so that financial statements are presumed to be fairly presented
• Understanding the various measurement basis used in FRS and how to determine that sufficient appropriate audit evidence have been collected
• 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 FRS
• Highlight the important of making technical and/or judgemental decision on whether to disclose certain information in accordance with FRS

Programme Outline

Highlight the critical technical requirements of selected FRSs that auditors should consider when gathering audit evidence as follows:

1	Audit of Presentation and Disclosure of Main Financial Statements What constitute fair presentation of financial statements
2	Audit of Income - (Revenue) Identifying revenue contracts Contract assets, contract liabilities Revenue recognise at a point in time or over time
3	Audit of Obligations – (Liabilities) How to identify obligations that give rise to liabilities
4	Audit of Assets Recognition criteria Debit – distinguishing between asset and expense Credit – distinguishing between liability and income Measurement requirements: Historical cost Amortised cost using original effective interest rates Fair value Entity specific value: Value in use or Net realisable value
5	Audit of Impairment of Assets The critical procedures for identifying indication of impairment
6	Audit of Financial Instruments Examining the contractual terms
7	Audit of Investment Interest and Business Combinations
8	Audit of Various Technical Issues in FRSs

 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
  
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course to gain an understanding on how FRSs can affect collection of audit evidence are welcome to attend.

Programme Facilitator(s)