Tianlong Audit Methodology
The Ultimate Guide to Auditing
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Chapter 5: Topics for specific circumstances
Standard Accounts
The specific topics provides guidance on designing and performing substantive procedures for the standard accounts stated below. The topic assumes an understanding of TAM and does not summarize or repeat our methodology.
We read this topic in conjunction with TAM.
We design and perform substantive procedures so that the combination of our procedures (including tests of controls) provides sufficient appropriate audit evidence to reduce audit risk to an acceptably low level and enables us to draw reasonable conclusions on which to base our opinion.
We design and perform substantive procedures at the assertion level to identify material misstatements and, if found, to quantify their effect in the financial statements.
Our substantive procedures consist of one or more of the following:
- Substantive analytical procedures
- Tests of details
- Tests of items to obtain information
Standard Accounts
B - Consolidation conclusions
C - Prospective financial information
D - Cash and short term deposits
E - Marketable securities
F - Segment reporting
G - Inventories
H - Trade receivables
I - Prepayments
J - Investments
K - Intercompany
L - Non-current financial assets
M - Notes payable
N - Trade payable
OE - Leases for lessees
OO - Leases for lessors
P - Provisions
Q - Non-current loans and borrowings and related income statement accounts
R - PPE
S - Commitments, contingencies, derivatives and hedging transactions
T - Equity
U - Intangible assets
V - Income taxes
VA - Indirect taxes
W - Assets recognized for the costs to obtn or fulfil a contract
X - Earnings per share
YA - Revenue
YB - Other operating income
YC - Finance income
YD - Revenue contract liabilities (IFRS 15ASC 606)
YE - Revenue contract assets (IFRS 15ASC 606)
ZA - Cost of sales
ZB - Payroll
ZC - Selling and distribution costs
ZD - Administrative and other operating expenses
ZE - Warranty provision and related income statement accounts
Topics under chapter 5: Topics for Specific Circumstances
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