Thank you Amanda , you are amazing...but I have question, have we need to recalculate the loan payments and interest ? And when we calculate PV for loans ? Thanks in advance

@amandalovestoaudit

3 жыл бұрын

Hi Murad - a great question - if the bank the client is using is known to be reliable and the country has strong laws and regulations over the financial industry - I wouldn't consider the need for it. However, if there are poor banking regulations - definitely something to consider doing. A great question - thank you for sharing with our community 😊

@maritab113

3 жыл бұрын

o

@tbmandzar

Жыл бұрын

​@@amandalovestoaudit Hi Amanda! Thanks for the video! I have a question related to Murad's question, what are the benchmarks for bank regulations that are not good? 

@tbmandzar

Жыл бұрын

Thankyou in advance, i wish you living well!

Thanks Dr. Your explanation is actually what goes on in the any type of bank.

Thank you for these videos series it's helping me understand auditing. I'm beginning to enjoy auditing.

@amandalovestoaudit

3 жыл бұрын

That is great to hear Mahlatsi - thanks for watching 😊

Great content! Thank u

Note on valuation: it may not be easy to agree the capital balance on the loan account to the amount in the financial statements because if measured properly under amortised cost using the effective interest rate method, the amount in the financial statements may disagree with the capital balance per the loan statement. Of course the EIR is an abstract accruals measure and not reflected in the actual loan accounts. Instead, can perform a calculation of the expected loan amount using the EIR method, but test the inputs into the amortised cost table by agreeing input capital and interest payments to the original loan agreement. Then once inputs into model are validated, use a tool like Solver in Excel to calculate the EIR that correctly discounts the cash flows.

Hi amanda, i find your channel very helpful and informative. Waiting for you cash/bank payables audit videos, lot of help in my line of work.. more power.

@amandalovestoaudit

3 жыл бұрын

Hi Mira! It is definitely on my list to do (which is quite long 😂)

@krios4804

3 жыл бұрын

AmandaLovesToAudit looking forward to it. ☺️

your videos are very helpful

Hi Amanda..great video as usual. just a request would you covering substansive procedure for related parties? the one particularly have more Subs and JVs? Thanks you in advance

Thanks Amenda from Cambodia!

@amandalovestoaudit

2 жыл бұрын

You’re welcome!

Thank you from India

I would like to thank you for this video. I have a question though, how would you disclose demand notes if they are intended to be paid but have not been requested to be paid back yet?

Thanks

Dear Amenda It's really interesting. Thank you for made clear explanations now I understood. It will really helpful for my AA exam I was searching for some one to get clear information about assertions testing. Thank you so much. Can you do it for inventory substantive procedures please. Good points in your video is You first questioning things what we have to check and What we need to understand about the systems. Superb 😍

@amandalovestoaudit

3 жыл бұрын

Inventory is definitely on the list! (There are so many accounts to do 🤣🤣)

@jegathakumarakuru8915

3 жыл бұрын

@@amandalovestoaudit Thank you Amenda

Hi Amanda, could you please let me know what is DRS in banking system?

Any Advances received for a period greater than 1 year might involve significant Financing Component. Hence In an aging Analysis any advances received for a period exceeding 12 months should be carefully examined

@amandalovestoaudit

3 жыл бұрын

Any advances older than 12 months definitely need to be examined for collectibility - you're quite right

Is there a way to download your slides so we can use them as notes?

Compare the prior's years list of loans to current year's list of loans to identify any loans that are not listed in latter and confirm payment of the loan with creditor?

Thanks, I feel it is vital to review the loan agreement line by line and that it is executed. The overriding question is the loan agreement come with obligations and what are those. What is the current and long term effect of the loan agreement....how easy is it to breach a covenant and consequences as mentioned in the loan agreement. Is the loan agreement oppressive. Does the client have a number of smaller loans , which in total will have a significant impact. In simple terms what is the present and future risk to the client and the degree of risk?

Hi amanda. By seeing ur video i am trying to prepare for interview. I have given so many interviews but i am struggling everything to crack it.

@amandalovestoaudit

3 жыл бұрын

Hey Puja - be yourself, answer their questions and if you don’t know the answer - try thinking out loud while trying to figure out the answer. Good luck!

Funny how I have a test on this on Monday😂 Dr Amanda I see what you doing there😉

@amandalovestoaudit

3 жыл бұрын

Good luck in your exam!

@ashleyduplooy6451

3 жыл бұрын

Hey Paulus, don't forget for simulated ITC we also do payroll and she did that amazingly the other day as well 🤣. It's like she's working with Jack

@paulusamuthenu6984

3 жыл бұрын

@@ashleyduplooy6451 Hi Ashley Yea thanks for sharing that, actually checked it out when you mentioned it... The pace of her uploads seem to coincide with our Syllabus. Our unsung heroes deserve to meet :-D

Thanks, Doc, i was flowing with your articulated presentation, but just two questions for clarification:1) Lets suppose management went ahead and borrowed without Board approval, assuming it was beyond their threshold, whats the Auditor's opinion with regards to that kind of an oversight? or deliberate ommission by management, thereof 2) Access to Finance, here in Africa, is usually a challenge and those who choose to borrow are often required to avail some form of Security to back up their application and my question would then be; How does the Auditor treat securitisation matters in combination with the Borrowings & Loans, i was hoping you were going to talk about it under Obligation when you perused that Substantive test of control. Thanks in advance, Doc and cheers, stay safe as well.................Africa remains logged-in! Unroll the series!

@amandalovestoaudit

3 жыл бұрын

Hi Bvumayi - two really great questions! 1. If management borrowed funds and it should have been approved by the board, but was not - that certainly raises red flags with us about the overreach of management and also a lack of corporate governance and accountability by the board. This is something that doesn't necessarily cause a misstatement - but it would be something we would raise with the audit committee. I'd also investigate whether there was any potential for fraud associated with such a loan. 2. A great question on securitisation - that would certainly be included in the debt covenants and we should check whether the entity has breached any covenants because that influences the financial statements and potential manipulation. If the entity had secured asset X for the loan and we couldn't find it - a good question becomes - does the bank or lender know this? Has there been any communication? Thank you for raising this - it wasn't even something I considered :)

Dear Amanda, thanks for your great videos on auditing. They really help. Got questions: If there are some guarantees granted to the lender covering the loan and interest, such as assets of the company pledged to the lender, should they be shown on the B/S and how? Can the board authorise management to borrow by settling limits, loan type, loan terms etc? All the best.

@romeompofu2906

Жыл бұрын

Pledges, liens and guarantees are disclosed in the notes under IAS 16 disclosures if PPE were pledged.

Sorry, I forgot the most important point not considered often enough! What constitutes an event whereby the lender could call in the receiver or liquidator? The auditor must know this.

Great effort ,, we always learn from your videos .. if we have a bank overdraft In USD Currency but The Financial Statements Are Presented In GBP Currency ,, so At The Reporting Date Do we Transfer the total amount of overdraft To Equivalent GBP And The Difference whether gain or loss goes to P/L ? .. thanks in Advance

@amandalovestoaudit

3 жыл бұрын

Hi Eslam - yes - all items on the balance sheet need to be recorded in the currency of the reporting entity and gains/losses should go to the P&L (only if it is a realised gain/loss - if it is unrealised, it needs to stay on the balance sheet)

This student found value in your video!

@amandalovestoaudit

3 жыл бұрын

That is great to hear Ntoto!

will not tracing the transactions or balance into the journal to ensure that they are properly recorded and accounted for.

Luv u Amanda...))

@amandalovestoaudit

3 жыл бұрын

Awww thank you 🙏❤️

Hi Amanda your videos are very helpful in my ACCA journey, another procedure for completeness assertion of loans and borrowings can be asking the bank or any another financial institution with which entity is operating its business processes for the loan statement of the year and cross check the statement with the loan amount show as NCL in the balance sheet.

Amanda your name sound Nigerian, please what gadget are you using to make your write up on your video. Please a feed back will do me good.

Hi Amenda Confirm completeness Obtain a breakdown all loan outstanding at the year end cast to verify airthimetical accuracy and agree the total to the financial statements And when we are recalculating the split between current liability and non current liability It will confirm the following Allocation, classification and presentation is it right? Please confirm I really confuse. Please explain

@amandalovestoaudit

3 жыл бұрын

Hi Jegatha - what you’ve described will also gather evidence on Valuation. And yes - the split between CL and NCL is Allocation 👍👍

Hey Hello Ma'am why using assertion of completeness on expense if the risk behind is overstating the expense? The co always tend to overstate the expenses so that to reduce the tax liability. Victor from Tanzania (East Africa)

@amandalovestoaudit

3 жыл бұрын

Hi Victor - it depends on the country. Where your accounting reported income is used for tax purposes - then yes, there is the incentive to overstate expenses. However, in many jurisdictions, the calculation of income and profit for tax purposes is different from IFRS reporting - therefore for shareholders, management do have a tendency to want to understate expenses to increase profit :)

@victorkyara4252

3 жыл бұрын

@@amandalovestoaudit Thanks doc, really appreciate

@amandalovestoaudit

3 жыл бұрын

Of course! Any time 😊

Good day ma, can we apply this lecture into practice been an auditor

@amandalovestoaudit

2 жыл бұрын

You can - just remember to take your client’s specific circumstances into account.

@amusaazeez4410

2 жыл бұрын

@@amandalovestoaudit thank so much ma, I appreciate ur effort towards our understanding of this course generally, henceforth, we will be willing to ask more qt From 🇳🇬Nigerian

Thanks