25th September 2024

TIMING

COURSE CODE

SE25A4

SPEAKER

Ralph Tiffin

OBJECTIVES

 Scepticism is a fundamental trait required when making judgements. We must consider the nature and application of scepticism and understand the work and evidence to arrive at and support our judgements – demonstrating our questioning, agreeing or disagreeing with clients’ judgements.

• To be fully aware of the subjective nature of accounting where judgement may be required as highlighted in many ISA’s and accounting standards
• To understand just what being sceptical may means – might we be too sceptical?
• To understand the approach to work required in judging judgements – our clients’ and our own. To consider the nature and application of scepticism
• To review the content of The Financial Reporting Council’s (FRC’s) Professional Judgement guidance for auditors (published 23 June 2022). Also consider implementation issues and feedback made since publication
• The Risk Identification and Assessment Process: Tips on Implementing ISA 315 - IFAC

WHO SHOULD ATTEND?

Auditors and accountants who audit, prepare and review financial statements, particularly statements with subjective numbers. Directors who are responsible for their numbers.

TOPICS

Subjectivity – when and what judgement is required?

Several ISA's and the underlying sections of FRS 102 cover potentially highly subjective amounts found in financial statements. Very obvious areas include:

• Provisions
• Impairments
• Revenue recognition

The need for thoughtful and documented judgements - A common feature is that in many cases published numbers depend on reliable estimates and underlying forecasts. This session aims to focus on what MUST be done to ensure compliance with the requirements of the ISAs and related FRS102 sections. Professional judgement has to be based on compliance with the rules. The FRC’s comprehensive professional judgement guidance is a vital reference.

How sceptical should we be?

Auditors are meant to be sceptical in thinking. That we are not sceptical enough is a continuing theme and message from the FRC and our Institutes. Once we have made our and reviewed the clients’ judgments we have to “stand back” (a topical term) - we should review how critical or sceptical we have been.

VENUE

This course will be available live online. You will be emailed the link to join two days before the course date.

DISTRICT

All

COURSE FEE

£100+VAT. (click here for information on the Flexiticket discount scheme - fees as low as £60.00+VAT per place).