[19:07:13] balbina: STUDY SESSION number 8 [19:07:23] balbina: Today topic is [19:07:30] balbina: G Current Issues and Developments

1. Professional and ethical 2. Information technology 3.Transnational audits4. Social and environmental auditing5. Other current issues [19:07:40] balbina: last part in our syllabus [19:07:52] hellohowlowlo: what u gonna do next weeks then? [19:08:06] balbina: do Qs [19:08:09] hellohowlowlo: nice [19:08:17] geoklean: lowlo! session..sovereftou gia lion [19:08:18] balbina: its enough for theory [19:08:21] geoklean: :) [19:08:39] hellohowlowlo: ok lets start [19:09:00] balbina: I have the feeling we talk all the time about the same topics [19:09:12] balbina: ethics we did at the very begning [19:09:19] hellohowlowlo: dejavu [19:09:24] balbina: transational audits we mentioned before [19:09:32] hellohowlowlo: dejavu [19:09:50] balbina: social and environmental auditing we also mentnioned before [19:10:01] hellohowlowlo: hm [19:10:02] balbina: after this session we need to focus on Qs better [19:10:10] hellohowlowlo: yes [19:10:37] balbina: Looking at part G in details [19:10:51] balbina: we should know about newest IFAC developments [19:11:20] balbina: i found some from January 2011 [19:11:38] balbina: do you know any other?

[19:11:46] balbina: earluer than Jan 2011? [19:12:38] geoklean: those arent the fundamental principles? [19:13:22] balbina: not this time I mean [19:13:35] balbina: of course fundamental principles need to be known [19:13:55] balbina: but in this matter today its about IFAC Code of Ethics [19:14:19] balbina: there have been changes in 2009 which went live in Jan 2011 [19:14:54] balbina: i think we can use it in Qs [19:15:23] taimooriqbal: r we gna discuss which changes r we talking about? [19:15:27] balbina: its about independance of auditors relating rules on listed companies [19:15:31] balbina: {taimooriqbal} yep [19:15:39] fgassita: objectivity [19:15:46] fgassita: prof behavior [19:15:56] fgassita: prof competence and due care [19:16:07] fgassita: confidentiality [19:16:13] hellohowlowlo: hey we talking about current issues now [19:16:20] hellohowlowlo: we're not doing ethics [19:16:26] balbina: {fgassita} yeah they are, but in this matter its more about rules related to IFAC code of ethics [19:16:28] fgassita: integrity [19:16:53] balbina: Do you know about KAP? [19:17:00] balbina: key audit partner? [19:17:11] fgassita: no babe [19:17:20] balbina: there is new concept about it [19:17:51] balbina: KAP when goes to client to work, i mean to work in their companie [19:19:01] balbina: there is gap [19:19:20] balbina: audit must take at least 1 year time [19:19:35] balbina: to be again independent [19:20:11] balbina: or that every 7 years need to rotate, and take 2 years cooling time

[19:22:08] balbina: can anyone tell me what is the difference betwen hot and cold review? [19:22:29] hellohowlowlo: cold is after [19:22:31] hellohowlowlo: hot is before [19:22:41] hellohowlowlo: report [19:22:45] balbina: :) [19:22:59] balbina: when do we perform cold review? [19:24:14] hellohowlowlo: u say [19:24:32] balbina: this one i dont know lol [19:24:52] hellohowlowlo: ok i think [19:24:55] balbina: i cant find my notes in this one [19:25:02] hellohowlowlo: lets say we have a client [19:25:11] hellohowlowlo: and this year we think something went wrong last year [19:25:14] hellohowlowlo: then we can do cold review i think [19:25:16] hellohowlowlo: not sure [19:25:41] balbina: or there may be some suspicious we are not independent [19:25:47] balbina: i think [19:26:25] balbina: cant find it in my notes [19:26:56] balbina: ok [19:27:18] balbina: how can we privide information regarding existing technology? [19:28:15] hellohowlowlo: emails [19:28:18] balbina: think about time saving [19:28:34] balbina: emails... be specific [19:28:52] hellohowlowlo: hotmail [19:28:59] hellohowlowlo: or gmail [19:29:05] geoklean: cold review is to ensure that quality control procedures are adequate and relevant and are operating effectively and are complied with. [19:30:47] geoklean: anyone there? :p [19:30:51] balbina: yep

[19:30:56] balbina: thanks geo [19:31:10] balbina: i m thinging when we in fact can use it [19:31:42] geoklean: well..i find it in the quality control chapter.. [19:31:55] geoklean: is for monitoring it sayd [19:32:20] hellohowlowlo: {balbina} u basically do cold reviews to learn what you did right and what u did wrong [19:32:24] hellohowlowlo: during the engagement [19:32:35] hellohowlowlo: its to learn from it [19:32:51] balbina: during engagment? not later? [19:33:00] hellohowlowlo: yes u doing it later [19:33:01] hellohowlowlo: but [19:33:04] geoklean: cold review you do it after an engagement has been completed [19:33:14] hellohowlowlo: to analyze what happened during [19:33:27] hellohowlowlo: did we do everything ok? etc [19:33:38] hellohowlowlo: could we have done something better? [19:33:42] hellohowlowlo: were our controls ok? [19:33:51] hellohowlowlo: did we get all evidence required? [19:33:54] hellohowlowlo: was our opinion ok? [19:34:01] balbina: is it rather performed by parter right? [19:34:07] hellohowlowlo: yes [19:34:11] hellohowlowlo: someone who has experience [19:34:16] hellohowlowlo: and able to do that [19:34:17] hellohowlowlo: yea partner [19:35:50] balbina: ok so lets go back to information technology [19:36:45] balbina: auditor can save some time by using CAATs [19:36:51] balbina: remeber that one from f8? [19:37:25] balbina: computer assisted audit techniques [19:37:58] geoklean: yep

[19:39:02] balbina: ufff [19:39:02] balbina: :) [19:39:25] geoklean: ? :p [19:39:40] balbina: good anyone remeber about it [19:40:14] balbina: what about searching for data about client? [19:40:19] balbina: how can we do it? [19:40:29] geoklean: Test data and audit software [19:40:44] balbina: what kind of software? [19:41:08] geoklean: for audit purposes [19:41:41] geoklean: specially designed for that [19:41:45] balbina: yep [19:41:52] balbina: CAATs [19:42:04] balbina: befere engagement when we dont know client [19:42:08] balbina: what do we do? [19:42:26] geoklean: em..know the client? ;p [19:42:34] balbina: yep how? [19:43:16] balbina: how can we get known the client? [19:43:22] balbina: its not tricky question [19:43:26] balbina: u know the answer [19:43:54] balbina: u have qs and the question is, you are an auditro before engagement, what do you do? [19:44:39] balbina: common sense [19:44:50] geoklean: speak with them [19:44:52] geoklean: :/ [19:44:57] balbina: before that [19:45:28] balbina: u dont know someone, what do you do when u want to know anything about this person? [19:45:41] geoklean: ask others

[19:45:45] balbina: yep [19:45:50] geoklean: send a letter to the previous auditor [19:45:51] balbina: and using technology [19:45:53] balbina: ? [19:45:59] balbina: easy and fast? [19:46:06] geoklean: email [19:46:09] geoklean: fax [19:46:22] balbina: before [19:46:52] geoklean: balbina i can admit that you have a looot of patient :p [19:47:10] geoklean: before what? ;/ [19:47:22] balbina: ok u met a man in disco, u gave him ur phone numer, he calls you and ask you to get out, what do you do to know if he is not criminal for example? [19:47:45] balbina: before i go out with hello what can i do? :D [19:47:47] geoklean: google him? [19:47:50] balbina: yesss [19:47:55] geoklean: Lol [19:47:59] balbina: use internet to gather information [19:48:02] balbina: google [19:48:08] geoklean: ok :) [19:48:14] balbina: search for fin report on web site [19:48:35] geoklean: ok..am with you again :) [19:48:42] balbina: :) [19:48:56] balbina: information technology its about using available resources [19:49:06] balbina: i think we need to remeber about it doing Qs [19:49:39] balbina: transational audits [19:49:47] balbina: remember what is it? [19:51:24] geoklean: em..audit of FS based on other country's laws [19:51:29] geoklean: something like that i think

[19:51:35] balbina: close [19:51:44] balbina: when we have large company [19:51:50] balbina: present in many coutries [19:52:30] geoklean: oh [19:52:33] geoklean: subsidiaries [19:52:48] balbina: yes [19:53:06] balbina: and as you said u need to relay on other country;s law [19:53:48] balbina: we need to remember by doing Qs with large company about cultural differences [19:54:02] balbina: other country regulations [19:54:26] geoklean: large company you mean a parent company? [19:54:26] balbina: FoF [19:54:33] balbina: yes [19:54:43] geoklean: ok [19:54:52] balbina: Forum of Firms [19:55:16] balbina: for the largies audit firms [19:55:28] balbina: its supported by IAASB [19:55:56] balbina: of course big four is in FoF [19:56:03] balbina: but many other [19:56:13] balbina: i ve read there are about 20 of them [19:56:18] balbina: already [19:56:38] geoklean: this is the first time i have ever heard about that :S [19:56:39] balbina: so IAASB is suporting FoF [19:56:46] balbina: :) [19:57:00] balbina: so all the firms have the same auditr standards [19:57:20] balbina: at the end everything is about quality [19:57:23] balbina: reputation [19:57:44] balbina: u can exchange best practice

[19:58:21] balbina: i know it seems not to be very important part of P7 [19:58:51] geoklean: yea.. [19:59:09] balbina: social and environmental auditing [19:59:19] balbina: its popular companies use CSR [19:59:26] balbina: corporate social responsibility [19:59:46] balbina: they issue csr report more often these days [20:00:03] balbina: what is an impact on auditors? [20:00:37] hellohowlowlo: hm [20:00:40] hellohowlowlo: we must check [20:00:50] hellohowlowlo: if thats likely [20:00:51] hellohowlowlo: to cause [20:00:55] hellohowlowlo: any non compliance [20:00:58] hellohowlowlo: with laws and regulations [20:01:06] balbina: yep [20:01:07] hellohowlowlo: which could impact Going concern [20:01:30] balbina: for example pollution [20:02:01] balbina: what about companies who use resources made by children? [20:02:36] balbina: or if they are fabrics in countries where political matters are not clear? [20:02:43] balbina: some coutries occupated [20:03:40] balbina: what is an impact on fin statement? [20:04:13] balbina: some environmental isses which have impact on fin stat [20:05:16] balbina: in Qs we may have it [20:05:59] balbina: as hello said mostly its about going concern review [20:06:09] balbina: but also about fair value [20:06:28] balbina: ok [20:06:32] balbina: about current issue [20:06:43] balbina: http://www.accaglobal.com/en/student/acca-qual-student-journey/qualresource/acca-qualification/p7/technical-articles.html

[20:06:44] hilariousastal: whether the disclosure related to pollution data is accurate and that not only benficial data is included bt all of it like including only number of plants installed in the year but not the amount of pollution such CO2 emission lets say [20:07:03] hilariousastal: so this needs to be audited [20:07:17] balbina: {hilariousastal} nice comment [20:07:23] balbina: good point [20:07:45] hilariousastal: and also if there are any guidlines such as GRE which are followed by company then whether such GRE guidles are properly impelented [20:08:03] hilariousastal: GRE = global reporting inititaitve [20:08:10] hilariousastal: {balbina} :) [20:08:40] balbina: wow i didnt know about GRE [20:09:17] hilariousastal: recently they have agreed to have some guidlines on reporting CSR related issues [20:09:38] hilariousastal: and they are in process of releasing the exact guidlines [20:10:12] balbina: {hilariousastal} go on [20:10:19] balbina: its very interesting [20:10:47] hilariousastal: and also there was an article by examiner on that i think i am not sure .. bt read abt this somewhere [20:10:50] balbina: we rather dont read it in books [20:11:06] hilariousastal: {balbina} its in P2 book in last chapters [20:11:09] hilariousastal: in kaplan [20:11:11] hilariousastal: i have read [20:11:16] balbina: do u remeber the title of article? [20:11:30] balbina: p2 :) again in my life [20:11:53] hilariousastal: unfortunately .. no .. but it said that exact guidince is on its way [20:12:26] hilariousastal: so u can search it in the articles. [20:12:32] balbina: http://www.accaglobal.com/en/student/acca-qual-student-journey/qualresource/acca-qualification/p7/technical-articles.html [20:12:42] balbina: here is the link to articles

[20:12:55] hilariousastal: also there have been some changes in form and content of audit reports .. would this be included in our sitting i was wondering? [20:13:32] geoklean: when the changes are affective? [20:13:43] geoklean: effective? [20:14:25] hilariousastal: {balbina} thnx [20:14:33] hilariousastal: here is a link on GRE [20:14:36] hilariousastal: http://www.accaglobal.com/en/discover/news/2013/05/amsterdamgri.html [20:14:47] hilariousastal: this is just a news thought [20:14:50] hilariousastal: though [20:15:45] hilariousastal: {geoklean} read the first article on the top in the technical articles link posted by Balbina [20:16:04] hilariousastal: i guess there should be some guidance on that [20:16:38] balbina: also for current issues we need to read all the technical articles [20:16:52] balbina: :( [20:17:00] geoklean: ok [20:17:02] balbina: :cry: [20:17:08] hilariousastal: yea bt there are so many of those [20:17:36] geoklean: yea..because we do not have anything else to do in our lives :( [20:17:43] balbina: yep [20:18:14] balbina: positive fluids at the end of our session [20:18:24] geoklean: articles are very helpful though..so is good :) [20:18:35] balbina: :) [20:18:50] balbina: okey dokey [20:19:03] balbina: we are done with theory [20:19:10] balbina: thank you very much [20:19:26] balbina: hopefully u r all ready to start doing Qs [20:19:33] balbina: now the game starts [20:19:45] hilariousastal: indeed

[20:19:53] geoklean: which ones are we going to do for next time? [20:20:10] hilariousastal: i wish u all very best of luck for exam [20:20:13] hilariousastal: :) [20:20:46] balbina: good question [20:20:55] balbina: examples or Qs [20:21:14] balbina: better Qs [20:21:21] balbina: maybe Pilot Paper? [20:22:26] hilariousastal: well i guess real question would be beneficial now [20:22:45] hellohowlowlo: {balbina} are u going [20:22:47] balbina: so PP? [20:22:51] hellohowlowlo: goodbye if u do so [20:22:55] balbina: not yet [20:22:58] hellohowlowlo: oh [20:22:58] hellohowlowlo: ok [20:23:44] balbina: so PP Q1? [20:23:55] balbina: lets try to make PP all Qs [20:24:08] balbina: and then we take it on next session if u need [20:24:11] geoklean: yes [20:24:19] geoklean: ok [20:24:30] balbina: i think its better we meet next MOnday any way [20:24:47] balbina: better to push ourselves to constant work [20:25:17] balbina: ok so we have plan [20:25:28] balbina: thank you for the session and study hard [20:25:31] balbina: have a nice week [20:25:42] balbina: :)