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Contents

Practice Monitoring Programme

  1. Audit Documentation & Audit Evidence

  2. Overview of Audit Planning & Risk Assessment

  3. Concept of Materiality

  4. Analytical Procedures

  5. Audit Sampling

  6. The Effects of Changes in Foreign Exchange Rates

  7. Property, Plant and Equipment

  8. Investments

  9. Inventories

  10. Construction Contracts

  11. Trade Receivables

  12. Cash and Bank Balances

  13. Trade Payables

  14. Finance Leases and Bank Loans

  15. Provisions

  16. Income Statement - Transaction and Cut-off Test

  17. Income Statement - Staff Cost and Directors' Remuneration

  18. Income Statement - Other Operating Expenses

  19. Audit Completion

  20. Justification of Audit Opinion

  21. Financial Statements Disclosures

1.  Audit Documentation & Audit Evidence                                  

Overview

Applicable auditing standards:

Documentation guidance:

Case Notes

PMP observation

1.  At planning stage:

  1. No planning documentation was available
  2. No materiality was set, or overall materiality not set.
  3. Comparative columns of financial numbers for two periods were prepared but no preliminary analytical review was documented on which are the potential risk areas.

2.  During the audit:

  1. No sample design was performed
  2. work performed was less than sample size calculated.
  3. exceptions noted during the audit were not properly addressed (e.g., NRV test)
  4. errors noted during audit were taken as being the only errors for the population from which the samples were selected from.

3.  On completion

  1. Comparative columns of financial numbers for two periods were prepared but no final analytical review was documented on whether the information obtained during the audit is consistent with the overall financial numbers
  2. issues noted during audit were not addressed or concluded.

Audit Implication

Audit documentation serves a number of purposes (SSA230R.5), including:

  1. Assisting the audit team to plan and perform the audit;
  2. assisting members of the audit team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with SSA 220 (Revised), "Quality Control for Audits of Historical Financial Information;"
  3. Enabling the audit team to be accountable for its work;
  4. Retaining a record of matters of continuing significance to future audits;
  5. Enabling an experienced auditor to conduct quality control reviews and inspections in accordance with SSQC, "Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements;" and
  6. Enabling an experienced auditor to conduct external inspections in accordance with applicable legal, regulatory or other requirements.

The auditor should obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. (SSA500.2)

Audit evidence that is generated internally is more reliable when the related controls imposed by the entity are effective (i.e. Internal controls need to be tested and concluded as effective). (SSA500.9)

The matter of difficulty or expense involved is not in itself a valid basis for omitting an audit procedure for which there is no alternative. (SSA500.13)

Learning Points

The auditor should prepare, on a timely basic, audit documentation that provides:

  1. A sufficient and appropriate record of the basis for the auditor's report; and
  2. Evidence that the audit was performed in accordance with SSAs and applicable legal and regulatory requirements. (SSA230R.2)

Audit documentation may be recorded on paper or on electronic or other media.  It includes, for example, audit programs, analyses, issues memoranda, summaries of significant matters, letters of confirmation and representation, checklists, and correspondence (including email) concerning significant matters.

Abstracts or copies of the entity's records, for example, significant and specific contracts and agreements, may be include as part of audit documentation if considered appropriate.  Audit documentation, however, is not a substitute for the entity's accounting records.  The audit documentation for a specific audit engagement is assembled in an audit file. (SSA230R.7) 

(SSA500.8) states that:

2.  Overview of Audit Planning & Risk Assessment

Overview

Applicable auditing standards:

Documentation guidance:

Case Notes

PMP observation

Audit Implication

Inadequate audit planning (or documentation of the planning) could result in inefficient and/or ineffective audits.

Learning Points

The auditor should develop an audit plan for the audit in order to reduce audit risk to an acceptably low level.  (SSA300.13)

The auditor should document the key planning procedures required under the standard.  (SSA230R.5)

In audits of small entities, the entire audit may be conducted by a very small audit team.  Many audits of small entities involve the audit engagement partner (who may be a sole practitioner) working with one engagement team member (or without any engagement team members).

With a  smaller team, co-ordination and communication between team members are easier.  Establishing the overall audit strategy for the audit of a small entity need not be a complex or time-consuming exercise; it varies according to the size of the entity and the complexity of the audit.  (SSA300.12)

For example, a brief memorandum prepared at the completion of the previous audit, based on a review of the working papers and highlighting issues identified in the audit just completed, updated and changed in the current period based on discussions with the owner-manger, can serve as the basis for planning the current audit engagement. (SSA300.12)

3.  Concept of Materiality

Overview

Applicable auditing standards:

Documentation guidance:

Question

S$'000 Company A Company B
Total assets 8,344 1,556
Revenue 4,069 1,099
Profit before tax 165 19

In your opinion, for each of the companies above, what should be the materiality for the audit?

Case Notes

PMP observation

1.  Different materiality levels were set for balance sheet and profit and loss accounts as follows:

S$'000 File 1 File 2
Total assets 8,344 1,556
Revenue 4,069 1,099
Profit before tax 165 19
Materiality    
Balance Sheet 200 10
Profit and loss 8 1.5

2.  No materiality was determined for the audit

Audit Implication

While the assessment of what is material is a matter of professional judgment (SSA320.4), the standard requires:

1.  The auditor to consider materiality at both the overall financial statement level and in relation to classes of transactions, account balances, and disclosures (SSA320.7); and that

2.  Materiality should be considered by the auditor when:

  1. Determining the nature, timing and extent of audit procedures; and
  2. Evaluating the effect of misstatements.  (SSA320.8)

Learning Points

(SSA320.9) states that:

An overall materiality enables the partner in evaluating whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.  (SSA200.26)

4.  Analytical Procedures

Overview

Applicable auditing standards:

Documentation guidance:

Case Notes

PMP observation

Analytical review figures were tabulated between periods, but there were no documentation of analysis being performed.  (e.g., No ratios being calculated, no explanations for significant variances, etc.)

Audit Implicaiton

Learning Points

The auditor should apply analytical procedures as risk assessment procedures to obtain an understanding of the entity and its environment.  Application of analytical procedures may indicate aspects of the entity of which the auditor was unaware and will assist in assessing the risks of material misstatement in order to determine the nature, timing and extent of further audit procedures.  (SSA520.8)

Analytical procedures applied as risk assessment procedures use both financial and non-financial information, for example, the relationship between sales and square footage of selling space or volume of goods sold.  (SSA520.9)

The conclusions drawn from the results of analytical review at the end of the audit are intended to corroborate conclusions formed during the audit of individual components or elements of the financial statements and assist in arriving at the overall conclusion as to the reasonableness of the financial statements.  (SSA520.13)

When analytical procedures identify significant fluctuations or relationships that are inconsistent with other relevant information or that deviate from predicted amounts, the auditor should investigate and obtain adequate explanations and appropriate corroborative audit evidence.  (SSA520.17)

5.  Audit Sampling

Overview

Applicable auditing standards:

Documentation guidance:

Case notes

PMP observation

  1. Sample size determined for sales test was 50 samples, however, work was performed for only 12 samples.  The reason for performing less audit work then initially planned was not documented.
  2. Purchase testing work were performed on 9 purchase items, representing 23% of total purchases.  There were no documentation on how 9 purchase samples were deemed to be adequate representative of the population.
  3. Source documents for testing sales cutoff was sales invoices without verification to evidence of customer's acknowledgement of delivery date.
  4. 6 out of 15 stock items selected for NRV testing were sold below the cost recorded.  There were no conclusion on why NRV was still deemed to be effective.

Audit Implication

The auditor should obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.  (SSA500.2)

Learning Points

The auditor should perform audit procedures appropriate to the particular audit objective on each item selected. (SSA530.44)

The aggregate of uncorrected misstatements comprises:

(a)     Specific misstatements identified by the auditor including the net effect of uncorrected misstatements identified during the audit of previous periods; and

(b)     The auditor's best estimate of other misstatements which cannot be specifically identified (i.e. projected errors). (SSA320.13).

The auditor needs to consider whether the aggregate of uncorrected misstatements is material.  If the auditor concludes that the misstatements may be material, the auditor needs to consider reducing audit risk by extending audit procedures or requesting managemen to adjust the financial statements for the misstatements identified.  (SSA320.14)

If the aggregate of the uncorrected misstatements that the auditor has identified approaches the materiality level, the auditor would consider whether it is likely that undetected misstatements, when taken with aggrefate uncorrected misstatements could exceed materiality level.  Thus, as aggregate uncorrected misstatements approach the materiality level the auditor would consider reducing audit risk by performing additional audit procedures or by requesting management to adjust the financial statements for identified misstatements.  (SSA320.16)

If management refuses to adjust the financial statements and the results of extended audit procedures do not enable the auditor to conclude that the aggregate of uncorrected misstatements is not material, the auditor should consider the appropriate modification to the auditor's report in accordance with SSA700 "The Auditor's Report on Financial Statements" (SSA320.15)

If the auditor has identified a material misstatement resulting from error, the auditor should communicate the misstatement to the appropriate level of management on a timely basis, and consider the need to report it to those charged with governance in accordance with SSA 260 "Communication of Audit Matters to Those Charged with Governance".  (SSA320.17)

 

6.  The Effects of Changes in Foreign Exchange Rates

Overview

Case Notes

PMP observation

There were no documentation on the assessment of the appropriateness of the choice of the functional currency by the entity.  This documentation is important particularly when the entity transacts significantly in foreign currencies.

Inventory list was maintained in various source currencies and was converted to the S$ functional currency using the year-end exchange rate.

Audit Implication

The determination of the appropriate functional currency affects the measurement and recording of all transactions.

Non-monetary foreign currency items should be translated at exchange rates at the date of the transaction.  (FRS21.23)

Learning Points

An entity's functional currency reflects the underlying transactions, events and conditions that are relevant to it.  Accordingly, once determined, the functional currency is not changed unless there is a change in those underlying transactions, events and conditions.  (FRS21.13)

7.  Property, Plant and Equipment (FRS 16)

Overview

1.  Assertions

2.  Audit Manual for Small Companies:

Case Study 1

Facts of the case

PMP Observations

Audit Implications

Learning Points

1.  Auditors to document the existence of PPE in accordance with SSA 230 even if the PPE had been mortgaged for financial instituion.

2.  FRS 16.73: The financial statements shall disclose, for each class of PPE

3.  Practitioners should remember to document the work done on the following areas.  If these are not material and no other further work will be performed, this consideration be documented.

Case Study 2

Facts of the case

Private exempt company trading in garments and related products

Company in net current liabilities position of S$40,666.

Total assets $966,800.

PPE balance at year end was S$464,950 (48% of total assets)

Loss before tax $462.

Question

What are of the things that the auditor may look at to determine if there are indicators of impairment for PPE?

PMO Observation

No work was performed to assess PPE for indicator of impairment.

Where there was indicator of impairment, there was inadequate work to assess the recoverable amount of the asset.

Audit Implications

Assertion of valuation for PPE not addressed.

Learning Points

8.  Investments

Overview

1.  Assertions

2.  Audit Manual for Small Companies:

Case Study 1

Facts of the case

PMP Observation

Audit Implication

Learning Points

(a)        the methods and, when a valuation technique is used, the assumptions applied in determining fair values

(b)        whether fair values are determined, in whole or in part, directly by reference to published price quotations in an active market or are estimated using a valuation technique (see paragraphs AG71–AG79 of FRS 39).

(c)        whether the fair values recognised or disclosed in the financial statements are determined in whole or in part using a valuation technique based on assumptions that are not supported by prices from observable current market transactions in the same instrument (i.e. without modification or repackaging) and not based on available observable market data. 

Case Study 2

Facts of the case

PMP Observation

Quoted investment was checked to CDP statement, fair value ("FV") change taken to FV reserves.

Audit Implication

Learning Points

Classification of financial assets should be performed in accordance with FRS 39.  FRS 39.9 lists out the different classification categories that are possible for different financial assets as follows:

Case Study 3

Facts of the case

Company in business of being computer consultants and dealers in computer hardware and accessories.

Total assets at year end was S$3,306,337

Investment in associated company was S$56,800, representing 2% of total assets.

Results of associate was S$86,436.

Materiality was S$63,337

Question

How do you account for an investment in associate?

PMP Observation

Investment in associated company not accounted for using the equity method.

Audit Implication

Not in compliance with FRS 28.

Learning Points

FRS 28.13 states that an investment in associate should be equity accounted for using the equity method except when exempted by the conditions listed in FRS 28.13 (a), (b) or (c).

FRS28.24: The most recent available financial statements of the associate are used by the investor in applying the equity method.  When the end of the reporting period of the investor is different from that of the associate, the associate prepares, for the use of the investor, financial statements as of the same date as the financial statements of the investor unless it is impracticable to do so.

FRS 28.25: when, in accordance with paragraph 24, the financial statements of an associate used in applying the equity method are prepared as of a different reporting date from that of the investor:

The investor’s financial statements shall be prepared using uniform accounting policies for like transactions and events in similar circumstances.

FRS 28.37 lists out the required disclosures.

9.  Inventories

Overview

1. Physical inventory counting

Case Study 1

Facts of the case

 

S$
Location A 356,798
Location B *109,376
Location C 254,390
Location D 8,658
Location E *90,876
Location F *24,387
  844,485

Question: Which locations to select for attendance are appropriate?

Selection made by Public Accountant (PA)

Locations B, E and F (indicated with "*") were selected for attendance.

PMP observation

There was no documentation of the basis of selection.

Common responses

Audit implication

Inappropriate selection of locations may not appropriately address the risk of material misstatement at different locations.

Learning points

Additional fact

PA was appointed as auditors on 24 March 2008.

PMP observations

There was no third party confirmation obtained.

Common responses

In view of the fact that it is a third party warehouse, there is no doubt on the quantities of the inventories maintained as management would be the first one to make noise if there are stock quantities discrepancies.

Audit implication

No appropriate audit evidence obtained to address the risk of material misstatement at third party warehouse.

Learning points

Additional Facts

Test counts were performed from count records to physical inventory only.  This addressed the existence assertion.

PMP observation

Test counts were not performed from physical inventory to count records to address completeness assertion.

Common responses

Checking of inventories from list to floor is considered adequate.

Audit implication

Completeness assertion was not addressed.

Learning point

Perform test count on selected sample of inventories items, both directions i.e.. from count records to physical inventory and from physical inventory to count records.  (SSA 501.13)

Additional Facts

Discrepancies between test counts and final stock listing were either documented as "missing items" or no explanations were provided.

Inventory Item Quantities per test count on 6 Jan 08 Quantities per ledger on 31 Dec 07 Differences in quantities Reasons
Item A 89 97 -8 Missing items
Item B 48 48 0  
Item C 78 72 6  
Item D 62 65 -3 Missing items
Item E 15 15 0  
Item F 34 34 0  
Item G 45 45 0  
Item H 63 70 -7 Missing items
Item I 79 81 -2 Missing items
Item J 20 16 4  

PMP observation

There was no follow up to investigate the discrepancies and assess the implication on the stocks as a whole.

Common responses

The impact is immaterial.

Audit implication

Valuation assertion was not adequately addressed.

Learning point

Overview

2. Unit cost test

Case Study 2

Facts of the case

PMP observation

There was no unit cost test performed to ensure that inventories are stated at a first-in-first-out basis.

Common responses

Audit implication

Valuation assertion for inventories at year end not addressed.

Learning points

Additional fact

Inventory Item Unit cost per ledger (A) Unit cost per supplier invoice (B) Variance (A) - (B)
Item A 1.20 1,20 -
Item B 3.45 3.75 (0.30)
Item C 7.62 N.A -
Item D 2.60 2.60 -
Item E 3.40 3.20 0.20
Item F 6.55 N.A. -
Item G 9.65 9.20 0.45
Item H 4.70 N.A. -
Item I 6.80 6.80 -
Item J 5.20 5.20 -

Discrepancies are noted in Item B, E and G, but there was no explanations provided.

PMP observations

There was no follow up to investigate the discrepancies and assess the implication on the stocks as a whole.

Common responses

Audit implication

Valuation assertion was not adequately addressed.

Learning points

Additional fact

There are no suppliers invoices (i.e. Client could not locate the supplier's invoices) for items C, F and H.

PMP observations

There was no replacement sample selected to complete the unit cost test.

Common responses

Audit implication

Valuation assertion was not adequately addressed.

Learning points

Additional fact

Items I and J are inventories purchased from US suppliers (and billed in US$) in months of July and Aug 2007, respectively.  The average exchange rate ruling in July and Aug 2007 are 1.517 and 1.523 respectively.  These inventories are all converted at year end rate of 1.446.

PMP observations

Foreign currencies denominated non-monetary assets (i.e. inventories) are incorrectly converted at year end rate.

Common responses

Audit implication

Valuation assertion was not addressed.

Learning points

At each balance sheet date, non-monetary items that are measured in terms of historical coast in a foreign currency shall be translated using the exchange rate at the date of the transaction. (FRS 21.23b)

Additional fact

Work-in-progress
  Raw Material Labour allocation Overheads allocation Mark-up WIP balance
  Depreciation Rental Electricity  
Phase A 106,729 98,076 65,430 8,762 87,500 0% 366,497
Phase B 23,876 87,645 61,829 8,253 8,109 8% 199,198
Phase C 78,659 167,292 81,629 10,987 100,862 8% 461,400
 
1,027,095

PMP observations

There was no work performed to assess the reasonableness of the labour and overheads allocation and the mark-up percentages applied to the various phases production.

Common responses

Audit implication

Valuation assertion was not addressed.

Learning points

Allocation of labour costs and overheads needs to be verify to assess if allocation has been applied correctly, consistently and is reasonable.  Factors to consider include:

Overview

3. Net realisable value test

Case Study 3

Facts of the case

PMP observation

There was no net realisable value test performed to ensure that inventories are stated at the lower of cost and net realisable value.

Common responses

Audit implication

Valuation assertion for inventories at year end not addressed.

Learning points

Overview

4. Review of stock obsolescence allowance

Case Study 3

Facts of the case (using same case study 3)

PMP observation

There was no work done to assess the adequacy of stock obsolescence allowance.

Common responses

Audit implication

Valuation assertion for inventories at year end not addressed.

Learning points

Additional Fact

PMP observation

There was no assessment of the appropriateness of provisioning policy or comparison against industry trends for reasonableness.

Common responses

Audit implication

Valuation assertion was not adequately addressed.

Learning points

Where the client determines the provision on the basis of a formula, consider whether:

10.  Construction Contracts (FRS 11)

Overview

1. Assertions - Existence, Completeness, Recording, Valuation, Cut-off

2. SSA230 - Audit Documentation

3. Audit Manual for Small Companies:

    Construction: Reference I

Case Study 1

Facts of the case

PMP observation

No review of projected project revenue and project costs, and verification to independent quantity surveyors' certificates to ascertain the stages of completion of projects under construction.

Common responses

Audit implication

Incomplete audit procedures performed may not appropriately address the assertions of CC.

SSA 230.2 requires the auditor to document matters which are important in providing evidence to support the audit opinion.

SSA 230.5 requires that the auditor to prepare working papers which are sufficiently completer and detailed to provide an overall understanding of the audit.

 

Learning points

• To ascertain the stage of completion for uncompleted construction contracts, auditors should:

• Progress billings should be supported by certification issued by independent quantity surveyors.

• All work done should be documented as required by SSA 230.

Case Study 2

Facts -of the case

• Company's total assets at year end was S$1,638,717.

• Construction contracts balance at year was S$143,422, relating to three projects that were uncompleted at year end.

• Materiality was S$50,000.

Question

• What are some of the activities that the auditor may perform for purposes of assessment for foreseeable loss.

PMP observations

• No work done for assessment of foreseeable losses. • No documentation of work done in respect of the above.

Common response

• Work was done but not documented (note: there was no documentation of the work done at the time of practice review)

Audit implication

 Assertion of valuation not adequately addressed.

Learning points

• Assessment for foreseeable loss may include:

• All work done should be documented as required by SSA 230.

11.  Trade Receivables

Overview

1. Trade debtors circularisation

• Assertions - Rights and Obligations, Existence

• SSA505 - External Confirmations

• AGS 2 - Verification of Debtor Balances - Confirmation by Direct Communication

Case Study 1

Facts of the case

• Trade receivables balance at financial year end (31 December 2007) was S$1,972,197, representing 80% of current assets and 53% of total assets.

• Company is in the business of importers and exporters of and dealers in all kinds of oil and gas producing supplies, regulators, piping materials and such other goods.

• Materiality was set at S$64,000.

• 8 trade debtors amounting to 5$1,535,330 (78% of total trade debtors) were selected for circularisation, as follows:

 

Trade debtors

Bal per ledger (SS)

Confirmation received (S$)

Non-replies (SS)

 

DebtorA

943,944

337,075

-

 

Debtor B

75,423

-

75,423

 

Dcbtnr C

711,765

79,765

-

 

Dcbtar D

45,298

45,299

 

 

Dcblor E

328,237

 

329,237

 

Debtor F

396

396

 

 

DebtorG

177

7

-

 

Debtor H

63,001

63,001

63,001

 

 Question: What alternative procedures should be performed for non-repli to circularised request?

PMP observations

• There was no alternative procedures performed on the non-replies to circularised request.

• The alternative procedures performed on the non-replies to circularised request was limited to vouching to sales invoices without evidence of customer's acceptance of goods.

Common responses

•  Most of the trade debtors circularised have confirmed, deemed sufficient coverage.

• There was no subsequent receipts for the non-replies.

Audit implication

Incomplete audit procedures performed on trade debtors circularisation may not appropriately address the existence and ownership assertions.

Learning points

• Alternative procedures should be performed on 100% of the trade debtors selected for circularisation, concept of "sampling on sample" is not appropriate.

• The auditor should perform alternative audit procedures where no response is received to a positive external confirmation request. The alternative audit procedures should be such as to provide audit evidence about the assertions that the confirmation request was intended to provide. (SSA 505)

•  Where the auditor is unable to obtain a response, the auditor uses alternative audit procedures. The nature of alternative audit procedures varies according to the account and assertion in question. In the examination of accounts receivable, alternative audit procedures may include examination of subsequent cash receipts, examination of shipping documentation or other client documentation to " provide audit evidence for the existence assertion. (SSA 505.32)

•  When the positive request method is used the auditors must:

  1. follow up by all practicable means those significant debtors who fail

  2. reconcile any difference between the balance confirmed by the

•  After two, or even three, attempts to obtain confirmation, a list of the outstanding items will normally be passed to a responsible company official, preferably independent of the sales accounting department, who will arrange for them to be investigated; this does not of course absolve the auditor from satisfying himself that the clearance procedure is properly carried out and from examining the results. Where there is any limitation in the follow up procedure it is all the more important to apply other auditing procedures to establish that there existed a valid debt from a genuine customer at the date of the verification. These procedures may include:       

  1. examination of payments subsequent to the date of the confirmation where there is evidence that the payments are received from or on behalf of the debtor and that they are in satisfaction of specific items;

  2. examination of evidence such as customers' orders in correspondence files, shipping documents and billing records, and stock control procedures.

Additional fact

Debtor A had indicated on the face of confirmation reply that the amount was "confirmed" and had attached the debtor's own statement of accounts to the confirmation reply showing a difference amount to the ledger balance. In addition, the confirmation was received via fax.

PMP observations

Common response

Audit implication

 Existence assertion was not adequately addressed. Learning point

Learning Points

Overview

2. Allowance for doubtful debts

            • Assertions - Valuation

Case Study 1 (cont'd)

Additional facts

Ageing profile of trade debtors:

PMP observations

• There was no assessment of the recoverability of the debts, especially those that were more than 90 days, representing 42% of total debtors.

• There was no testing of ageing report to ensure the accuracy-and reliability of the correct ageing for purpose of assessment of doubtful debts.

Common responses

• Most of the confirmation requests have been received.

• Directors confirmed that there was no recoverability issues.

• Client has been with the public accountant for a long time, no issue with collections.

• Client has good accounting system, no need to test the ageing.

Audit implication

The valuation assertion of trade debtors balance was not adequately addressed.

Learning points

Additional facts

Subsequent receipts amounting to S$1,679,086 , representing 85% of total debtors were checked to excel tabulation prepared by client.

MP observations

Subsequent receipts were agreed to client prepared schedules. There was no verification to source documents such as bankin-slips-and payment advice from the debtors.

Common responses

• Client has been with the public accountant for a long time, there is no reason to doubt the quality of the client's tabulations.

Audit implication

The valuation assertion of trade debtors balance was not adequately addressed.

Learning points

Audit procedures of agreeing to client prepared scheduled is not considered sufficient appropriate audit evidence to address the valuation assertion. Audit evidence is more reliable when it is obtained from independent sources outside the entity i.e. third party documents such as bank-in-slips and customer's payment advice. (SSA 500.9)

 

12.  Cash and Bank Balances

Overview

1. Bank Confirmations

        • Assertions -Existence, Completeness, Recording, Valuation, Cut-off

        • SSA505 -External Confirmations

        • SSA230 -Audit Documentation

2. Audit Manual for Small Companies:

         • Bank Balances and Cash: Reference K

Case Study 1  

Facts of the case

    • Cash and Bank balance at year end was S$166,520, representing 9% of total assets.

    • Company had 8 bank accounts and bank confirmation requests were sent for all 8 bank accounts.

    • Trust receipts for S$75,890 was reflected in a bank confirmation.

PMP observations

Common responses

Due to late response, checked to bank statements instead.

Audit implication

Incomplete audit procedures performed on bank confirmation may not appropriately address the existence and completeness assertions.

Learning points

13.  Trade Payables

Overview

            - Trade and Other Payables: Reference L 

Case Study 1 - Circularisation

Facts of the case

Question.

• What alternative procedures would the auditor perform for non replies?

PMP observations

• Inadequate alternative procedures performed for the 9 non-replies as the alternative procedures were limited to vouching to subsequent payments.

• There was no independent verification to supplier statement of accounts or invoices.:

    -  Either none or inadequate alternative procedures performed to address replies that had exceptions..

Common responses

• Will vouch to supplier statement or invoices in future.

• Will send a reminder for follow-up in future if no reply received.

Audit implication

Incomplete audit procedures performed may not appropriately address the existence and completeness assertions.

Learning points

 

Case Study 2 - Non-original replies

Fact of the case

• Trade payables balance at year end was S$8,602,527.

• 2 out of 8 replies to circularised requests were non-original.

PMP observations

   • There was no work done to validate the authenticity of the source of replies received.

Common response

• A case of oversight. Will verify the authenticity of the source of replies in future.

Learning points

 

Case Study 3 - Search for unrecorded liabilities

Facts of the case

• Trading and manufacturing of fabricated metal products, electrical equipment and accessories and engineering works

• Total trade payable and other payable at year end was S$1,234,942.

PMP observations

• No work done in respect of search for unrecorded liabilities. (This observation was due to lack of documentation of work performed ).

• Work done was limited to checking to correspondence files and minute books. (Note that there were PMP observations of other entities whereby the wok done was limited to checking to subsequent payments ).

Common responses

• Work was done, but not documented.

• Acknowledge the lack of documentation.

Audit implication

 • Assertion of completeness, recording, validity and cut-off not adequately addressed.

Learning point

 

14.  Finance Leases and Sank Loans

Overview

1. Finance Leases and Bank Loans

            • Assertions -Existence, Completeness, Valuation, Presentation

            • SSA505 - External Confirmations

            • SSA230 -Audit Documentation

2. Audit Manual for Small Companies:

            • Long Term Loans: Reference M

 

Case Study 1

Facts of the case

Company A:

        • Exempt private company with principal activities of importing, exporting and distribution of all kinds of computer products.

        • Term loan balance of S$77,573.

        • Materiality was S$40,000.

Company B:

Question

        • What alternative procedures could the auditor perform, if no confirmation reply was received or a confirmation request was sent.

PMP observations

Company A:  

        • No confirmation reply obtained in respect bank loan balance.

Company B:

        • No confirmation was obtained from the finance company or checked to hire purchase contract.

        • Hire purchase creditors balance was not verified to hire purchase statements.

Common response  

Company A:

        • Due to late response, checked to bank statement instead.

Company B:

        • Will take note.

 

Audit implication   

Learning points

 

Case Study 2

Facts of the case

• Company has Term Loan consisting:

    - Short Term S$33,388; and

    - Long Term - S$2,377,853.

• Company has Finance Lease consisting:

    - Short Term - S$50,755; and

    - Long Term - S$136,467.

Question

 • What are some of the disclosures required for:

        - Term Loan

        - Finance Lease

PMP observations

• No disclosure in respect of the following for bank loans / finance leases:

         > effective interest rate;

         > fair value of non-current portion;

         > re-pricing dates or maturity dates of finance leases/ bank loans.

Common response

• Will take note of the required disclosures for subsequent year.

Learning points

• PRS 32.67 states that for each class of financial assets and financial liabilities, an entity shall disclose information about its exposure to interest rate risk including:

                (a) contractual re-pricing or maturity dates, whichever dates are earlier; and

                (b) effective interest rates, when applicable.

• FRS 32.86 states that that except as set out in paragraph 90, for each class of financial assets and financial liabilities, an entity shall disclose the fair value of that class of assets and liabilities in a way that permits it to be compared with the corresponding carrying amount in the balance sheet. Please refer to FRS 39 for guidance for determining fair values.

• In the event that is no material difference between carrying amount and fair value, audit work performed or considerations made by the auditors should still be documented in accordance with SSA 230.

• Disclosures should also include information of any assets that had been held as collateral or security, such the carrying amounts of buildings or machineries being held as security for bank loans. This could be verified to bank facilities offer letters or bank loan replies.

 

 15.  Provisions

Overview

  1. Assertions - Validity, Completeness and Valuation

  2. SSA230 - Audit Documentation

  3. Audit Manual for Small Companies:

                • Trade and Other Payables: Reference L

Case Study 1

Facts of the case

PMP Observations

Question

What are some of the procedures that the auditor could perform to address the above observations on (i) accrual of bonus and salaries; and (ii) staff. unutilized leave

Common responses

 Audit Implications

Learning points

•  FRS 37defines provision as a liability which an estimate is applied to determine the obligation as at the balance sheet date.

• The estimate should be tested accordingly to ensure validity, completeness and valuation of the financial amount of the obligation.

• Accrual of staff related expenses such as payroll; CPF and bonus could be verified to subsequent payments after year-end.

• Accrual of general expenses can be verified by vouching to subsequent invoices received; purchase orders or price quotes received.

• Accrual of unultilised staff leave:

        -  To understand management's basis for accrual made / not made

        -  Work done on the basis could include

                        ■ Checking to un-used leave of staff existing as at year-end, the respective staff's monthly salary and re-computing.

                        ■ Checking historical trend and quantum of payouts of such amounts.

•  As accruals involves accounting estimates and judgment by the management, auditors need to document the nature of such accruals, the basis on which these accruals are made and the auditor's evaluation of these amounts, and conclude on the reasonableness and,,: adequacy (over/under provisions). Disclosures in the financial statements should be made if deem appropriate.

• All work done should be documented as required by SSA230.

 

 16.  Income Statement - Transaction and Cut-off Test

Overview

1. Income Statement - Sales Transaction Test

2. Income Statement - Safes and Purchases Cutoff Test

 

Case Study 1

Facts of the case

For test of details for sales transactions, the audit work performed were:

     • Vouch to sales invoices

     • Check computation

     • Check posting to general ledger

     * In one instance, the audit file only contain completion of audit programme and sample selection planning documents. There were no documentary       evidence of work performed.

 PMP observation

There was no verification to customer acknowledged, delivery orders or shipping documents.

Common responses

•  Sales transactions are mainly in cash. No delivery orders are issued .

• Noted, we should extend test to delivery orders

• Delivery orders checked together with sales invoices but did not document it, will document it in future.

Audit implication

Incomplete audit procedures performed on sales may not appropriately address the occurrence assertion.

Learning points

• The auditor should extend the testing to include acknowledged copy of delivery orders or shipping documents to ascertain occurrence.

• Proper documentation should be on file to address the occurrence assertion should delivery orders or shipping documents not be available. Example: verification to the day's cash receipt deposit slip to the day's sales taking.

Case Study 2

Facts of the case

• For sales (or purchases) cutoff testing, the auditor checked to sales (or purchase) invoices respectively.

• No sales (or purchases) cutoff testing was performed.

PMP observation

There was no verification to customer acknowledged delivery orders/terms of shipping documents, (or goods receipt documents for purchases) to determine the date the title to the goods changed hand

Common responses

• Noted, will extend test to delivery orders (or goods receipt documents).

• Noted, will perform sales (or purchase) cutoff testing in future

Audit implication

Incomplete audit procedures performed on cutoff may not appropriately address the cutoff assertion.

Learning points

The auditor should extend the cutoff testing to include acknowledged copy of delivery order / shipping documents (or good receipt documents) to ascertain proper cutoff.

 

17.  Income Statement - Staff Cost and Directors' Remuneration

Overview

• Assertions - Completeness, Occurrence, Accuracy, Presentation and disclosure

• SSA500 - Audit Evidence

Case Study 1

Facts of the case

    •  Inadequate testing were performed for staff cost expense and directors' remuneration

PMP observation

    •  The auditor should perform testing work on the staff cost expense and directors' remuneration to address the completeness, occurrence, accuracy, presentation and disclosure assertions.

Common responses

    •  Noted, confirmation will be obtained in future.

    •  Directors' fees are per directors' meeting minutes and approved at the AGM.

Audit implication

     •  Inadequate audit procedures performed on staff cost expense and directors' remuneration may not appropriately address the completeness, occurrence, accuracy, presentation and disclosure assertions.

Learning points

The auditor should perform audit testing work on the staff cost expense and directors' remuneration. Example: month-to-month variance analysis; staff existence test; confirmation of remuneration; etc.

 

18.  Income Statement - Other Operating Expenses

Overview

       • Assertions - Occurrence, Accuracy, Completeness

       • SSA500 - Audit Evidence

       • SSA530 - Audit Sampling and Other Means of Testing

PMP observation

         •  Inadequate audit work performed on material operating expenses items for addressing occurrence, accuracy and completeness assertions.  

Common responses

        •  We did a review of the types of expenses to the general ledger

        •  Amount is. not significant as compared to cost of sales (amount is double of materiality)

        •  Analytical review performed by partner but not documented

Audit implication

Learning points

 

19.  Audit Completion

Analytical Review

         •  Applicable auditing standards:

                    -SSA 520-Analytical Procedures

         •  Documentation guidance (ICPAS Audit Manual):

                    - For small companies

                            •  B9 : Final analytical review

Learning Points

     •  The auditor should apply analytical procedures as risk assessment procedures to obtain an understanding of the entity and its environment. Application of analytical procedures may indicate aspects of the entity of which the auditor was unaware and will assist in assessing the risks of material misstatement in order to determine the nature, timing and extent of further audit procedures. (SSA520.08)

     •  Analytical procedures applied as risk assessment procedures use both financial and non-financial information, for example, the relationship between sales and square footage of selling space or volume of goods sold. (SSA520.09)

     •  The conclusions drawn from the results of analytical review at the end of the audit are intended to corroborate conclusions formed during the audit of individual components or elements of the financial statements and assist in arriving at the overall conclusion as to the reasonableness of the financial statements. (SSA520.13)

     •  When analytical procedures identify significant fluctuations or relationshipsthat are inconsistent with other relevant information or that deviate from predicted amounts, the auditor should investigate and obtain adequate explanations and appropriate corroborative audit evidence. (SSA520.17)

Post Balance Sheet Events Review

Applicable auditing standards:

      -  SSA 560 Subsequent Events

      -  SSA 500 Audit Evidence

      -  SSA 230 Audit Documentation

Documentation guidance (ICPAS Audit Manual)

    - For small companies

             • T : Summary sheet - post balance sheet events

             • T2 : Audit program - post balance sheet events

             • T4 : Final program - post balance sheet events

Post Balance Sheet Events Review Case Study 1

 Facts of the Case:.

          • Date of the financial statements ("FS") : 31/12/07

          • Date of approval of the FS : 28/02/08

          •  Date of the auditors' report : 28/02/08

          •  Date the FS are issued :15/03/08

 Question:

     • Up to which date should the auditor perform procedures designed to obtain sufficient appropriate audit evidence that all events that may require adjustment of, or disclosure in, the financial statements have been identified?  

PMP Observations:

Common Responses:

     •  Post balance sheet events review not performed:

     •  No/lack of documentary evidence:

Audit Implications:

Learning Points:

 

Management Representation Letter - Case Study 2

 Applicable auditing standards:

     - SSA 580 Management Representations

     - SSA 240 The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements

Documentation guidance (ICPAS Audit Manual):

     - For small companies

•  B7 : Summary of unadjusted errors

•  B83.1 : File completion questionnaire

 

Management Representation Letter - Case Study Two

Facts of the Case:

     • Date of the financial statements ("FS") : 31/12/06

     • Date of the management representation letter : 26/02/07

     • Date of the auditors' report : 22/10/07

Question:

     - Has the management representation letter been appropriately dated? What further procedures can be performed to address the above circumstance?

PMP Observations:

• Management representation letter was not dated.

• Management representation letter was obtained and dated after the date of the auditors' report.

Common Response:

         • Due to oversight.

 Audit Implication:

         • An inappropriately dated management representation may not provide sufficient, appropriate audit evidence that is necessary to support the audit opinion.

Learning Point:

        • A management representation letter would ordinarily be dated the same date as the auditor's report. However, in certain circumstances, a separate representation letter regarding specific transactions or other events may also be obtained during the course of the audit or at a date after the date of the auditor's report, for example, on the date of a public offering. (SSA 580.13)

Management Representation Letter - Case Study 3

Facts of the Case:

• Private company with turnover of $543,831 and loss before tax of $366. Audit materiality is $15,000.

• Year end is 31/03/07 and auditors' report date is 19/09/07.

• Included in management representation letter dated 19/09/07 is the following paragraph:

Question:

PMP Observations:

Common Responses:

    • Exclusion of management's responsibility for the design and implementation of internal control to prevent and detect error from the representation letter:

            ❑Due to oversight.

            ❑As all our clients are small in size and everything is under the control of directors/shareholders, internal control procedure is not very important.

            ❑The directors have accepted responsibility for internal control through the "Statement by Directors".

   • Summary of uncorrected misstatements

            ❑Have been separately discussed and agreed with management.

            ❑Not attached to the representation letter due to oversight.

Audit Implications:

Learning Points:

 •  The auditor should obtain written representations from management that:

  1. it acknowledges its responsibility for the design and implementation of internal control to prevent and detect error; and

  2. It has disclosed to the auditor the results of its assessment of the risk that the financial statements may be materially misstated as a result of fraud. (SSA 240.39)

 •  The auditor should obtain written representations from management  that:

  1. It acknowledges its responsibility for the design and implementation of internal control to prevent and detect error; and

  2. It believes the effects of those uncorrected financial statement misstatements aggregated by the auditor during the audit are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. A summary of such items should be included in or attached to the written representations. (SSA 580.05a)

Going Concern

        • Applicable auditing standards:

        - SSA 570 Going Concern

        • Documentation guidance ICPAS Audit Manual)

        - For small companies

                        • T 3 : Going concern - checklist

                        • T3.1: Going concern - conclusion

 

Going Concern - Case Study 4

Facts of the Case:

    • Principal activities : Trading of office equipment, computer accessories and its related products

    • Financial year-end : 31/12/2007

    • Turnover - $42,302,394; Loss before tax - $4,293

    • Total assets - $3,994,739; Net current liabilities - $251,681

    • Materiality : $164,184

Question.

• What are the considerations and documentation required to support that the FS can be prepared on a going concern basis?

PMP Observations:

     •  No going concern evaluation performed or the evaluation was superficial and inadequate.

     •  Did not adequately perform the following procedures:

                ✓ identify or evaluate the significance of conditions indicating that an entity may not be able to continue as a going concern, such as cumulative. losses since incorporation, negative operating cash flaws, and net liability/ net current liability positions.

                ✓ Evaluate management's plan to mitigate the effects of such adverse indicators, and/or obtain Information about the likelihood that such plans could be implemented effectively.

                 ✓ Evaluate the adequacy of the financial statements' disclosure of the going concern conditions and management's plan to mitigate them.

Common Response:

        • Based on verbal discussions with management and the understanding of the client's business, the auditor had assessed that the going concern assumption is appropriate and. thus did not deem it necessary to document the work done.

             - E.g. The net current Liabilities position is caused by amounts due to directors, which if excluded, the company will be in net current

                asset position. However, this has not been documented as it can be derived from the audit working papers.

Audit Implications:

        • The going concern assumption is a fundamental principle in the preparation of financial statements and the auditor's assessment must be clearly documented as the conclusions reached will have an impact on the final audit opinion.

Learning Points:

 

20.  Justification of Audit Opinion

 

    • Applicable auditing standards:

             - SSA 700 The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements

             - SSA 701 Modifications to the independent Auditor's Report

    • Documentation guidance (ICPAS Audit Manual)

            - For small companies

                     • B6 : Justification of audit report

 

Justification of Audit Opinion - Case Study 5

Facts of the Case:

        -  Principal activities : Importer, exporter, wholesaler and retailer of all kinds of electronic goods.

        -  Turnover - $12,870k; Loss before tax - $341k; Total assets - $4,705k; Audit materiality - $75k

         -  No stock take was performed on stocks amounting to $264k held at one location due to incomplete record-keeping of the stock quantities.

Question:

        -  What is the possible impact on the audit opinion? Please provide justifications (reasonable assumptions can be made).

Additional Facts:

-  The stocks for which no stock take was performed amounted to $264k.

-  Total stocks balance at year-end = $668k.

Question:

     -  How would these additional facts affect your previous assessment? Given the above limitation on scope, please justify how an unqualified audit opinion is appropriate.

PMP Observations:

Specific Response:

Audit Implications:

 Learning Points:

    • The auditor should evaluate the conclusions drawn from the audit evidence obtained as the basis for forming an opinion on the financial statements. (SSA 700 .11)

    • Modifications to the Auditor's Report (SSA 701.02):

                - Matters that Do Not Affect the Auditor's Opinion

                            • Emphasis of matter

                - Matters that Do Affect the Auditor's Opinion

     • Qualified opinion,

     • Disclaimer of opinion, or

     • Adverse opinion.

     • Matters that Do Not Affect the Auditor's Opinion

                -The auditor should-modify the auditor's report by adding a paragraph to highlight a material matter regarding a going concern-'problem.`

     • The auditor should consider modifying the auditor's report by adding a paragraph if there is agni scant uncertainty (other than a going concern problem), the resolution of which is dependent upon future events and which may affect the FS.

    •  Matters that Do Affect the Auditor's Opinion

    •   Matters that Do Affect the Auditor's Opinion

21.  Financial Statements Disclosures.

Auditors' Report on Financial Statements - Case Study 6

Facts of the Case:

     • Year-end : 31 March 2007

     • Date of auditors' report : 23 October 2007

Question:

    • What are the factors to be considered when determining the date of the auditors' report?

Additional Facts of the Case:

 • Bank confirmation reply was dated 30 October 2007.

 • Trade debtors' and creditors' confirmations were sent out on 29 October 2007.

Questions:

    • is the current date of the auditors' report of 23 October 2007 still appropriate?

    • How would these facts affect the date as to date which the audit report should be dated?

PMP Observations:

     •  The auditors' report was dated prior to the completion of the audit.

     •  The auditors' report did not comply with the format set out in SSA 700.

Common responses:

• Due to an oversight.

• Due to error when typing the auditors' report date.

Learning points:

Financial Statements Disclosure - Areas of Non-Compliance

Please review the set of financial statements of "S-GAAP (SINGAPORE) PTE LTD" for any areas of non compliance with SFRS in relation to disclosure and presentation.

General

    • The entity's registered office and principal place of business was not updated. (FRS 1.126a).

    • The functional currency of the company was not disclosed. (FRS 21.17, FRS 21.51)

    • No disclosure of the date the financial statements were authorised for issue by the directors of the company. (FRS 10.17)

Profit and Loss Statement

    • Profit and loss account was presented using a hybrid classification of expenses by nature and by function. (FRS 1.88)

    • There was no breakdown of "Other expenses" which are material to the financial statements. (FRS 1.29, 1.86)

Statement of changes in equity

 -  There was no disclosure of the item of income and expense for the period that is recognised directly in equity, and the total of these items. (FRS 1.96b)

Cash flow statement

 • Fixed deposits pledged to a bank as security for credit facilities granted cannot be withdrawn at any time, and thus should not be included as cash and cash equivalents. (FRS 7 Definition)

• Misclassification within categories of cash flows, e.g. factoring loan, amount due to directors, trust receipts and hire purchase creditors should be classified under financing rather than operating activities. (FRS 7.17)

• Finance cost which is a financing activity was not adjusted from the net cash flows from operating activities. (FRS 7.20c)

• Proceeds from and payments of borrowing was stated on a net basis instead of its respective gross amounts. (FRS 7.21, FRS 7.22)

• The cash outflow from the purchase of plant and equipment should exclude the amount purchased via finance leases. FRS 7.43)

Basis of preparation

Accounting policies

    • No disclosure of significant accounting policies (for e.g. financial assets and liabilities, impairment, revenue recognition, leases) (FRS 1.108, 1.110, 1.112)

Critical accounting estimates, assumptions and judgments

 • There was no disclosure of key assumptions concerning the future, and other key sources of estimation uncertainties at the balance sheet date. (FRS 1.113, 1.116)

FRS and INT FRS not yet effective

• There was no disclosure of the new FRS/INT FRS that have been issued but are yet effective. (FRS 8.30)

Financial instruments & Financial risk management

Related parties

• No disclosure of key management personnel compensation (FRS 24.16).

• No disclosure of related party balances and transactions. (FRS 24.17)

Inventories

Work-in-progress/ Progress billing

Property, plant and equipment

Income taxes  

• There was no disclosure of an explanation of the relationship between tax expense (income) and accounting profit. (FRS 12.81c)

• There was no disclosure on unrecognised DTA (e.g. unutilised tax losses). (FRS 12:81e)

• There was no disclosure of the nature and breakdown of the deferred tax balance. (FRS 12.81g)

• DTA and DTL were disclosed gross even though the DTA and DTL were levied by the same taxation authority on the same taxable entity. (FRS 12:74)

Share capital and reserves

• There was no disclosure of the par value per share, or that the shares have no par value [FRS 1.76a(iii)] and the rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital [FRS 1.76a(v)].

• There was no disclosure of the nature and purpose of the reserve (FRS 1.76b).

Dividends

Revenue

• Accounting policy for revenue recognition does not appropriately define the points of transfer of significant risks and rewards of ownership of the goods to the buyer, which is the point when revenue it recognised. (FRS 18.35a)

• No disclosure of breakdown of revenue between sales of goods and services income. (FRS 18.35b)

• The disclosure of the nature of revenue is inconsistent with the activities of the company.

Operating leases

• There was no disclosure of the commitments for future minimum lease payments under non-cancellable operating leases (FRS 17.35a), the lease payment recognised as an expense during the year (FRS 17.35c), and a general description of the company's leasing arrangements (FRS17.35d)

Reclassification of accounts (FRS 1.38, 1.39)

• Inconsistent classification of balances with prior period's FS. The nature; the amount and reasons for the comparative figures or reclassification was not disclosed. 

Financial Statements Disclosure -

New Standard or Interpretation that has been issued but is not yet effective

Applicable accounting standard:

 FRS 8.30: When an entity has not applied a new Standard or Interpretation that has been issued but is not yet effective, the entity shall disclose:

  1. this fact; and

  2. known or reasonably estimable information relevant to assessing the possible impact that application of the new Standard or Interpretation will have on the entity's financial statements in the period of initial application

Where to obtain the information:

 

No.

Titles

Effective Date

 

Changes in Existing Decommissioning, Restoration and Similar

 

NT FRS 101

Liabilities (Consequential amendments arising from FRS 23)

01-Jan-09

NT FRS 112

Service Concession Arrangements (Consequential amendments arising from FRS 23)

01-Jan-09

NT FRS 113

Customer Loyalty Programmes

01-Jul-08

INT FRS 116

Hedges of a Net Investment in a Foreign Operation

01-Oct-08

INT FRS 117

Distributions of Non-cash Assets to Owners

01-Jul-09

 

List of INT FRS Issued but not yet effective as at April 12009: 

No. Titles Effective Date
FRS 1 Presentation of Financial Statements Revised 1-Jan-09
Presentation of Financial Statements 1-Jan-09
(Amendments relating to puttable Financial instruments and obligations arising an liquidation)
FRS 23 Borrowing Costs (Revised) 1-Jan-09
FRS 27 Consolidated and Separate Financial Statements 1-Jan-09
(Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate)  
FRS 32 Financial Instruments: Presentation 1-Jan-09
(Amendments relating to puttable financial instruments and obligations arising on liquidation)  
FRS 39 Financial Instruments: Recognition and Measurement 1-Jul-09
(Amendments relating to Eligible Hedged Items)
Financial Instruments: Recognition and Measurement 1-Jul-08
(Amendments relating to Reclassification of Financial Assets )
First time Adoption of Financial Reporting Standards  1-Jan-09
(Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate)
FRS 102 Share-based Payment 1-Jan-09
(Amendments relating to vesting conditions and cancellations operating Segment)
 FRS 108 Operating Segments 1-Jan-09