Audit help

[GoldenRetreiver]

Hi I was wondering if anyone could help with some advice. We have just started an intensive Audit course with the simulation due on 21st Dec. There seems an awful lot of work to do in 4 days - can anyone offer any advice as to what the key subjects tend to be in the simulation etc. Thanks

[bryan100]

Make sure you know:
the difference between audit and accounts completion!
what controls you are looking for, SOAPSPAM
the difference between compliance and substantive testing
the direction of testing, i.e. debits for overstatement and credits understatement
the evidence trail required for true and fair
what true and fair means
Bear in mind that in audit you can stretch a little knowledge a very long way!

[Jay]

Hi

Very clear answer from Bryan (I'm taking my audit on the 20th) and I am unclear what to revise.

Just one thing, can you explain what SOAPSPAM stands for???

:001_smile:
Thanks
Jay

[peugeot]

SOAPSPAM is an acronym used in audit and stands for:

Segregation of duties
Organisation
Authorisation
Physical
Supervisory
Personnel
Access
Management

It can also be part-reversed as "SPAMSOAP". It is used to test controls.

Hope that helps.

Best regards
Steve

[GoldenRetreiver]

Thanks for your help - I will keep my fingers crossed

[bryan100]

Just to give you hope!
At ACCA final level there was and may still be a Management paper. No numbers, just the usual drivel. I used to lecture the entire paper in one 5 hour afternoon. It was often the most successful paper (which may say a lot about my lecturing of the other subjects).
Auditing is much the same, you keep saying the same thing again and again.
I remember doing audit for the first time in 1991, the text book required you to read a paragraph and then refer to the Audit statements, (no standards in those days) I often had the wrong standard open but it didn't make any difference. Just tell yourself that this is the most interesting subject you've ever studied and you love it!