Practise focuses on effective learning strategies and techniques for students. It covers various methods to enhance study habits, improve retention, and optimize exam preparation. This guide is ideal for learners seeking to boost their academic performance and develop lifelong learning skills. Key topics include time management, active learning techniques, and self-assessment strategies. Designed for students of all levels, this resource aims to empower learners to achieve their educational goals.

Key Points

  • Explores effective study techniques for improved retention and understanding
  • Covers time management strategies to enhance academic performance
  • Includes active learning methods to engage students in their studies
  • Offers self-assessment tools to track progress and identify areas for improvement
Cookie Babu
20 pages
Language:English
Type:Notes
Accounting
Cookie Babu
20 pages
Language:English
Type:Notes
Accounting
322
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215 Hurling Co.
Audit Risk Response
Upgrading Website:
Hurling Co distributes its products through
wholesalers as well as via its own website.
The website was upgraded during the year
at a cost of $1.1 million.
As per IAS-38 The cost which has been
expensed out and only capitalize those
amount which has met the criteria of
Capitalize, not doing so will overstate the
asset and understate the expense.
Review the breakdown of the cost in order
to conirm the expense are properly treated
and the amount has been completely and
accurately recorded.
Also conirm whether the company is
following appropriate accounting
standards.
Warehouse Acquisition:
the company
has recently entered into a transaction to
purchase a new warehouse and legal
advisers are working to ensure that the legal
process will be completed by
the year end.
As per IAS-16, only asset whose ownership
has been received and whose physical
existence can be conirmed should only be
record as PPE.
This risk here is that if the legal process is
not completed at the year end the company
might record the asset which will result in
overstatement of assets.
Discuss the management to conirm
whether the ownership has been
transferred before the year end or not. And
Check asset registers of the company.
Irredeemable Preference Shares:
The company issued $5 million of
irredeemable preference shares to inance
the warehouse purchase
Irredeemable Preference shares should be
treated as equity, as the risk here is that the
company may record this as Non-Current
Liability. If this the case than company might
understate equity and Overstate the Non-
Current Liability.
Inspect the documents to conirm that the
preference shares are irredeemable, and
whether they have correctly recorded that
in Equity.
Additionally Share Registers can be checked
and the bank account whether the money
has been received or not.
Asset Useful Life:
Finance director has increased the useful
economic lives of ixtures and
Discuss with the inance director the
rationale for increasing life of the asset, Also
ittings from three to four years as it was
considered to be a more appropriate period.
As per IAS-16 PPE, the useful life of the
Asset should be reviewed each year and
only increase the useful life only If there is
genuine reason to do so.
So the risk here is that if the reason is not
genuine it will lead to overstatement of
Assets and Understatement of Depreciation
expense.
verify whether the increase in useful life is
appropriate or not.
Additionally Auditor can perform analytical
procedures.
Receivables:
The inance director has informed the
engagement partner that a revised credit
period has been agreed with one of its
wholesale customers, as they have been
experiencing dificulties with repaying the
balance of $1.2 million owing to Hurling Co.
If Customer is facing dificulties, the amount
should be properly classiied as bad debts or
proper allowance for receivable for the
same, If company fails to do so it will
overstate the Trade Receivables.
Review the revised credit terms and check if
any after date cash has been received from
the customer.
Discuss with the Finance Director whether
they have any intention to create the
allowance for receivables, if no check the
appropriateness of available allowance for
receivables.
202 Knight Company (10/16)
Audit Risk Audit Response
Audit of a new client: Hercules & Co, has
recently won the audit of a new client.
As the auditor has won a new client, the
auditor might not be aware of the
company’s nature, its accounting policies
and reporting framework. Detection risk
could increase.
Auditor can obtain understanding of the
business and perform analytical procedure
to implement audit strategy.
Auditor can also obtain information from
company’s previous auditor.
Stock Exchange Listing: Knight Company
is considering a stock exchange listing next
year.
As CEO of Knight company is considering a
stock exchange listing next year, company
might involve in boosting revenue of the
company and engage in window dressing in
order to obtain listing. Which might
overstate the revenue and understate the
expenses.
Auditor can perform Cut-off testing and also
maintain professional scepticism, with
obtaining information from the inance
director and CEO of the company on
revenue.
Also auditor can check invoices or bills that
indicates true and fair view for the revenue
balances.
Service Agreement: Knight Electronics Co
began to offer customers the option to
purchase a three-year servicing agreement.
As per IFRS 15 revenue should only be
recognized when the duty to provide service
is performed.
As the customers pay full at the start of the
agreement the company might have
recorded full three year revenue in a single
accounting period which may lead to
revenue being overstated and Trade
Receivables being overstated.
Auditor can perform cut-off testing in each
agreement and also check invoices or
agreement for three-year service plan.
Inlation in price of Components:
Component parts are purchased from a
number of suppliers. Prices of components
have been steadily increasing over the past
two years leading to a reduction in the gross
proit margin.
As informed by company that inlation in
price of components has led to decrease in
gross proit margin this indicates that
company is not using FIFO method which
Auditor can check purchase invoice from the
supplier and provide consultancy on
inventory method for using FIFO method
that might help in increasing gross proit
margin.
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End of Document
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FAQs

What are the key principles of effective learning?
The document outlines several key principles for effective learning, including the importance of setting clear goals and objectives. It emphasizes the need for active engagement with the material, which can be achieved through techniques such as summarization and self-testing. Additionally, the document highlights the significance of spaced repetition and varied practice to enhance retention and understanding.
How can learners improve their retention of information?
To improve retention, the document suggests employing techniques such as elaborative interrogation, where learners ask themselves why the information is true. Another effective method is the use of mnemonic devices, which help in encoding information in a memorable way. Furthermore, the document advises learners to regularly review material and to connect new information with existing knowledge.
What role does feedback play in the learning process?
Feedback is described as a crucial element in the learning process within the document. It allows learners to identify gaps in their understanding and to adjust their study strategies accordingly. The document emphasizes that timely and specific feedback can enhance learning outcomes by providing insights into performance and areas needing improvement.
Which study techniques are recommended for effective learning?
The document recommends several study techniques that contribute to effective learning. Among these are the use of practice testing, which not only assesses knowledge but also reinforces learning. Additionally, the document advocates for the use of concept mapping to visualize relationships between concepts, thereby aiding comprehension and recall.
How does motivation affect learning outcomes?
Motivation is identified as a significant factor influencing learning outcomes in the document. It discusses intrinsic motivation, which stems from personal interest and enjoyment in the subject matter, and extrinsic motivation, which is driven by external rewards. The document suggests that fostering intrinsic motivation can lead to deeper engagement and better retention of information.
What is the significance of goal setting in learning?
Goal setting is highlighted as a critical component of effective learning in the document. It provides learners with direction and a clear focus, which can enhance their commitment to the learning process. The document notes that specific, measurable, achievable, relevant, and time-bound (SMART) goals can significantly improve motivation and performance.

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