Who is genius bar foulks

Rocketcars, rocketmen, futuristic cities with racing trikes, sonic trains, centrifuges and of course the new VW Golf GTE…. Working closely with Thomas and our long trusted concept artist Sylvie Minois we researched and refined looks for each of the vehicles.

At the same time the surrounding environments were considered, whilst also building a detailed pre-vis as we went. The edit was quick, much like the vehicles themselves, so timing was crucial. The concept designs fed into the Art department, who created some incredible pieces for the shoot - LED biker suits, rocket wings, cockpits and train cabins to name a few.

All of these elements combined to shoot over three studio days in Prague. Using a combination of matte painting, fluids, particles, cloth, photogrammetry and just about every 2D tool there is, work began combining the shot material with their environments.

Thanks to a clear vision from Thomas, and the foundations laid in the pre-vis, we were able to move through a tight six week schedule smoothly. There was also a host of invisible work required, from scaling down the Rocketcar drivers crash helmet to adding CG visors in all the close ups.

The guys at Ten24 created a full degree scan of the rocketman's suit, this allowed us to add in some flapping cloth and other details…. Most of what you see in this spot was created at TBA from scratch, from the Icelandic inspired canyons to the future city race track. Client: Three Prod. Company: Hungryman Prod. A parody of the "Lord of The Rings" style epic quest movie, we follow five household objects as they traverse suburban obstacles in search of their own holy grail, a Talk Talk TV household.

They brave deserts, jungles, mountains and oceans in reality the more humble obstacles created by sandpits, hedgerows, roadworks and ponds. Nexus completed all of the character design and animation in house and asked us to lead the compositing, digital matte painting and grade. There was some quite extreme vfx transformations needed to take the footage, shot in the "exotic" location of suburban Bromley, into the realms of Mordor.

Have a look at the example below. In addition a lot of time was spent integrating other elements needed such as rain, water splashes, smoke and mist. Air Max, the most iconic Nike trainer ever made Beats a pair of Dunlop wellies any day of the week. Nike approached Tom and Carl at More Soon to design three films that matched the ground-breaking thinking that had gone into the sneaker boot. The brief stated that they had to represent the practical qualities that made the boot different to a normal Air Max: warm, waterproof and visible.

We worked with Tom and Carl, helping to develop their original ideas. Both of the guys are makers themselves which made the process very collaborative from a post perspective. They both originate from a design background and this aesthetic shines through in their approach to film making.

These parts were then skilfully combined with our 3D boots and animations creating the three distinctive films.

The project was full of visual problem solving, design and and all round CGI craft. The agency brief from Serviceplan International Hamburg was to explore the idea of an unreal city-scape in constant flux and change.

With the agency and director we explored various options and possible techniques to visualise this in the development stage. After some early boards and animation tests it was decided that we would develop a city that heaved and rolled on a landscape that reflected the movement of ocean waves. By utilising open source mapping data the 3D team developed a quick system that could illustrate the possibilities for the effect to the client based on differing street layouts and cityscapes, lifted directly from real locations.

The campaign celebrates the idea that beauty is about much more than what appears on the surface. The creative plays on the trend in design, engineering and wider society of looks being valued over substance. The viewer is taken on a journey through various objects, including a golf ball, suitcase, chest of drawers and an accordion, discovering something surprising and beautiful about the inside of each one.

The brief in the first instance was to help explore and define how one could travel into and through a series of objects conceived by the creatives and directors.

Further to this, we had to establish the right amount of time spent inside each object, the time required travelling towards the object to allow for recognition and the general flow throughout.

This all culminated in a sequence of shots of the car in action, inside and out. We set about making a full 3D pre-vis of the commercial to help to visualise the concept as a complete film. The results were then passed back and forth through an editing process until everyone felt we had locked down the basic structure of the film. The main challenge of the project was to both accurately represent what was inside each object whilst also embellishing this with the beautiful abstract imagery one might imagine when exploring from an impossible perspective.

For example in the case of the camera, robot, amp and accordion we had to sacrifice real objects and cut them up to look inside. We researched how they worked and gained an understanding of how you might pass through each section while maintaining a visual interest and beauty in the image.

This meant understanding when an object would be sliced through and when the viewer would become fully immersed in the object, such as in the interior of the golf ball or the snow dome hidden inside the suitcase. Other challenges included combining 3D with stop-frame imagery. The 3D was put under close scrutiny given the macro nature of the journey through each object.

We closely analysed the stop-frame footage and applied the findings in the comp. The addition of shallow depth of field immediately miniaturised the clean CG renders.

Lens aberration, light leak, randomising the clean edges and subtle animation in the placing of the object on each frame all helped to mimic the stop-frame look. Although enormously complex at times the job was a pleasure to work on. Congratulations to Anthony and Factory for their Bronze at the Clio Awards for sound design on this project. Director: Chris Turner Prod. Andre Dias Smoke: Mike Aveling.

An epic spot for Vodafone from Sebastian Strasser through Radical Berlin This ambitious project first crossed our path in the spring with a phone call from Sebastian. What followed was a bizarre conversation about sim cards, eggs, cats, transformers, buffalos and rockets. Although we were left scratching our heads it was immediately apparent that the film was going to be ambitious, bold and packed with creative vfx.

Fast forward four months and here you have it. The answer to some very important and often unasked questions including: what does an egg turning into a kitten look like? The film's premise is a simple if crazy one; that the new vodafone sim card will, like some bizarre piece of modern day sorcery, "power up" any object to a new form. As for our job, with such varied and complex images needed we were primarily tasked with problem solving at every level, during scripting and development, on set and through to the later post production stages.

Stylistically the director wanted to keep the camera off the tripod and hand held throughout which added to the narrative flow of the spot overall but of course increased the complexity of the vfx shots. The creature work and full fur on the buffalo for example taking many weeks to perfect for the completion of only three short shots.

We're really proud of the final image and the low-fi and naturalistic feel of the spot overall. Transformers with kittens - what more could we ask for?! For those of us who grew up in the UK in the 80's, Channel 4 quickly installed itself as the black sheep of domestic broadcasting at a time when Mary Whitehouse was campaigning daily against subversive "video nasties". In fact where I grew up, attracting Mary Whitehouse's wrath was something of a seal of approval and an ideal reason to program the Betamax.

This is an interesting project for 4Creative that explores Channel 4's attitude to cutting edge programming and risk taking. The idents were designed to revisit the "red triangle" series of programming which began in September At this time broadcasts on late night TV were preceded by a warning , saying "Special Discretion Required" and displaying a full-screen logo of a red triangle with a white centre.

To prevent viewers who missed the warning at the beginning from later being unwittingly exposed to the adult content of the film, a smaller red triangle was continually displayed in the top left corner of the screen throughout the broadcast. This quickly led to the broadcasts being informally known as the "red triangle films". Rather than adopt a cgi route Steve and Grant wanted to create something physical to shoot on set, from which they could layer up multiple passes of light and refraction.

They created a perspex pyramid and then got busy in the studio experimenting. We worked up these layers and the supplied typography to create the multiple versions sent to air. Turns out the NBA's leading scorer for the last few years, Kevin Durant, has been keeping his eye on which of us mere mortals have been training for the new season… Surveillance graphics, holographic terminals, hand scanners, server racks and interactive basketball courts were just a few of the additions from Time Based Arts, not to mention a wealth of grading, lighting and clean up.

Are you ready? At last we've done it! We've finally delivered a job that our Mums are proud to say 'my son worked on that'. Our involvement came early in the process assisting Anthony in the planning and design of the VFX shots. Anthony wanted to stay true to the concept of an invisible partner which meant no wires, no harnesses and no crazy rigs.

It's all done for real with opposing professional dancers and it was down to us to make them disappear. The results capture the dancers defying gravity and pulling off some unbelievable moves.

Check out the side by side edit below for a peek at the invisible dance partners in their fetching lycra suits. Full marks for commitment! The time frame was tight which meant pretty much the whole of Time Based Arts got involved, even down to Joe and Ralph our multi-talented roto-scoping runners.

Definitely one that turns your head after an omnibus edition of Eastenders. The tale of one dude's happy life in reverse, beautifully conceived by Johnny Kelly for Coca Cola. The scenario is captured by an array of skilfully crafted automaton puppets. Johnny designed and then pre-vised the concept down to the millimetre. Anarchy made it all come to life the whole set spans a mighty 7 metres!

The imperfections of the real, hand-made approach is the very thing that make it perfect. Its another one shot, mind boggling achievement by Mr. Based on the success of the existing campaign they were looking to take the visual forward, creating abstract visions of what your phone might see if it could dream.

The objective was to invite cinema-goers to switch off their phones before the film, suggesting they text DREAM to Sprint to activate a reward when their phone awakens. This reward was one of three personalised html5 generated films showing what your phone has been dreaming about. The creatives at Leo Burnett asked us to propose different visual routes that these dreams could take. This allowed us a lot of creative freedom to suggest the visual journey and we were able to work very collaboratively with the agency.

We settled on creating an internalised feeling in the opening section, with the user reaching in to shut down the phone. This followed on from the UVA film that ended at the phone's "core". We then used this "core" or "brain" as the starting point from whence abstract dream imagery flowed. It was also interesting to deliver a job that we knew would be viewed exclusively in film theatres.

We worked closely with the sound designer to create a spot that in the context of the cinema commercial break is a really intense and immersive experience.

It was great to produce, direct and then craft a piece all in house here at Time Based Arts. As we were nearing the end of reading Jaron's treatment for this Coke Burn project we'd already decided we had to get involved.

Some mails end up in your inbox for a reason The words conjured up amazing imagery and having worked with Jaron before, we knew it would be a Time Based Arts classic. The film follows the vivid dreams of five freerunners as they jump and leap their way through a disused warehouse.

Their abstract visions pulled from their dreams and projected into the space. As the film progresses the projected theme becomes more evident and the texture of the warehouse begins to show through. It ends on a reveal of the space as the projections switch off and the runners meet in the hub of the building. It had to feel projected but not give the away the concept too early in the film.

What would it look like if you could back project something 5 stories tall on to concrete and from every direction. We think something like this. Most shots were camera tracked and rebuilt in Nuke or 3D. We built bespoke textured warehouse features into each scene and it was all brought together in Flame. We created a dark and moody ocean for the first scene and additional 3D fire and smoke for the final vignette.

We then graded the imagery throughout to maintain the muted feel that Jaron shot for. We've been following Johnny's work since the inspiring and game changing shorts 'The History of Gaming' and 'The Future of Gaming' through to his recent work for Ridley Scott's Prometheus. Understandably we were pretty taken to be working with him at Time Based Arts. The film captures the contest of Lucozade vs. Water, introducing a new scientific claim, that Lucozade Sport hydrates and fuels better than water under scientific testing.

Twenty four competitive athletes go head to head, half fuelled purely by Lucozade and the other by water. The action takes place under laboratory conditions monitored by a group of GSK scientists. Johnny's attention to design is apparent throughout the film.

Location, art direction, costume, sound, grade and the design of the graphics all marry together to create a unique image that personifies the idea perfectly. We helped out with realising his designs for the screens, developing a thermal imaging look, animating the stats and comping them into the footage.

A nice 2 week run in to Christmas and a great end to of our exploits for We were delighted to be able to work with Sebastian Strasser in bringing his vision for the film to life. It was a huge campaign spot and shot over six long nights in multiple Hong Kong locations.

Every section of the film had a large degree of vfx work — The beauty of the opening scene in the street market for example disguising the fact that it was built from many passes and layered up to build the rich and atmospheric establishing wide shot.

Ahead of the shoot and throughout the post process we developed the look and feel of the lighting effect closely with the director and client. This was important as it acts as the narrative thread throughout the spot. It had to work on the widest range of scales - whether being emitted from a phone held in the hand or being seen spreading across continents from space.

This was built up by using a variety of techniques and executions to embed the computer generated tail. These included cgi water simulations, shot textures captured here at our studio and source imagery from the location itself.

He said: "All people at TBA are creative, perfectionistic, highly professional and on top of all warm hearted. Even a grumpy, never happy director like me has to confess: it is simply a pleasure working with them.

The new GS h is driven through a dizzying array of environments, from slick city streets to forests to highways in the Midwest. The ad was inspired by the efforts of the chief engineer of the Lexus GS, Yoshihiko Kanamori, and his team, who drove the car a million miles around the world during its development. Our involvement started when Antony approached us to discuss how he wanted to apply stop frame photographic techniques into a seamless journey. We tested with different rigs and setups before settling on a Canon 5D MarkII shooting RAW exposures every second with the camera vehicle moving at 30 miles per hour.

This became a constant for the multiple shoot days that occurred around the world including California, South Africa, Namibia and Iceland. This constant movement forward allowed us to begin to stitch the images together, finding links between the forever encroaching landscapes, until it's very hard to see which element is taken from which location. In doing so we created a seamless impossible road that transcends multiple locations, continents and seasons.

All of the car material was shot in Los Angeles where the only examples of the new car were available. This included a day in the studio where one car had it's roof removed to allow a MILO motion control rig to travel through the car and into the sat nav screen on multiple lighting passes. The interior roof of the car was replaced in post with sgi assets. Other key areas included the "neurones" end sequence which was designed and brought to life by Oscar Gonzalez.

All in all it was a huge project for us here at Time Based Arts, one which we were really able to craft and bring ideas to, under Anthony's direction. The difficulty and complexity of it's execution we hope is suitably disguised by the commercial's overall effortlessness to watch.

Working closely with the directors he developed and evolved many visual interpretations of ideas born from the script before filtering these down to create a common aesthetic that runs through the 8 distinctive vignettes. In parallel Jess Gorick worked up the overall edit and the animation of the typographic elements. Additional 3D development was added by Oscar Gonzalez and Chris Wood and then Remi Dessinges skilfully brought the 3D to life with some brilliant lighting and rendering.

The 2D and 3D elements were then passed to the guys in Flame. Sheldon, Mike and James worked-up the images further, defining the composition, look and grade of the piece. Projects like these give everyone an opportunity to show off their design skills and creative flare. Just the kind of stuff we love. It was also a great opportunity for Time Based Arts to showcase the recently formed 3D arm of the company.

Some of James's reference and working drawings in the studio. The ad played out in cinemas across the US encouraging viewers to switch off their phone during the film and allow it to dream! UVA approached the concept with a vision that was unique and unconventional. They created a huge installation built up of 9 different sections all shot using motion control with imagery synced using their own software D3.

Our job was to stitch all the separate passes together to create a seamless journey into the nucleus of the phone. The result is visually arresting and somewhat difficult to grasp given the scale of the units. Check out the stills on our blog from the shoot. They illustrate just how big the phone actually is. Ben Newman and the team at Karmarama have created a 60 second film that celebrates the genius of Shakespeare and how one man managed to capture the human condition.

We were involved in the early stages, working closely with Ben to create a pre-vis which allowed him to visualise the flow of the camera throughout the film.

We then took the footage and crafted seamless transitions between each vignette, added some additional clean-up and atmospheric effects before ending the journey with the beautifully concieved 3D nebula. Big thanks to Yafei and the crew at Important Looking Pirates for their brilliant work on this. The commercial was shot on numerous locations in Spain and Italy across many varying formats.

We worked closely with the director and agency creatives to integrate the typography and deliver the strong graphic execution. The spot was graded in house at Time Based Arts. The films were shot on location in New Zealand by Joakim Reveman. We were involved from the early stages designing and planning the FX shots. Sheldon then travelled out to NZ to supervise proceedings.

The three films had to be turned around in a four week period during which Christmas and New Year fell slap bang in the middle. We brought together a strong team and got to work on the Alexa files pre grade in order to get a head start. Not to mention the embellishment of life into the cute animatronic racoon! On an early morning in June, Jim and I shared a cab with our friend and longtime collaborator Chris Cairns.

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New York: Macmillan Company, rev. Cambridge: University Press, 3rd ed. Cambridge: University Press, 5th ed. Cambridge: University Press, 12th ed. London: John Richards and Co. London: William Benning and Co. Rochester, N. Edinburgh: T. Clark, 10th ed. Clark, 8th ed. Probate Law and Practice of the State of Indiana 1v. The opinion is the auditor s; he must ensure that the expert s work is sufficient appropriate evidence for his purposes.

Before any reliance is made, the external auditor should assess the internal audit function in terms of: organisational status scope of function technical competence due professional care When the external auditor intends to use specific work of internal audit, he should perform audit procedures on that work to confirm its adequacy for his purposes.

Examples are banks maintaining safe custody of investments, or a computer bureau operating the payroll function for a small company. Relevant activities are activities undertaken by a service organisation that are relevant to the audit. The two examples above are relevant activities, while a window-cleaner washing the office windows once a month is not a relevant activity.

At the planning stage, the auditor must determine the significance of service organisation activities to the entity and the relevance to the audit. Internal control is the process designed and effected by the directors and others to provide reasonable assurance about the achievement of the entity s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Internal control consists of the following components: the control environment the entity s risk assessment process the information system relevant to financial reporting control activities monitoring of controls The control environment is the overall attitude of management regarding internal controls and their importance.

It encompasses management s philosophy e. An ICQ lists all possible controls for each area of the accounts; the client s system is examined to see which controls exist. An ICE does not attempt to record all controls; instead, for each control objective, it asks for the controls which achieve that objective.

An ICE is more useful to the auditor than an ICQ, since it focuses on whether internal control objectives are being met. Control procedures are set in place to achieve these control objectives. Tests of control or compliance tests are those tests carried out to determine whether a control procedure has operated satisfactorily during the period.

For example, authorisation controls include: check orders received against customers limits credit. This is illustrated below for a sales system Customer order Despatch note Goods received note Sales invoice Test for evidence of approval Test for evidence of a sequence check Test for: evidence that a GRN is raised for all sales returns accepted evidence of a sequence check Test for: serial numbering evidence of a sequence check evidence of matching sales invoice to despatch notes and customer orders correct accounting Credit note Receivables ledger Receivables ledger control account Test for: evidence of approval and matching to GRN correct accounting Test for evidence of authorisation of adjustments to receivables ledger accounts Test for: evidence of review of reconciliation to receivables leger.

The approach that can be adopted of listing the documents in a system and thinking of tests for each document is illustrated below for a purchases system. Select two payrolls some months apart and identify the differences in names between them.

Those on the first but not the second are leavers in the period. Those on the second but not the first are starters in the period. List all the starters and leavers and check that they were accurately paid for the periods.

THE CASH SYSTEM Control objectives -to ensure that all cash receipts are collected, recorded and banked -to ensure that all cash payments are purposes and have been authorised for payment -to ensure that receipts and payments recorded accurately and completely in accounts Controls over cash sales -cash sales should be recorded when the sale is made, normally by entering the sale in a cash till and giving the customer a cash receipt a till slip -the total cash received should be reconciled daily with the total till slips, and should be banked daily 55 FTC FOULKS LYNCH properly for proper are the.

The of the year-end bank reconciliation and in supporting documentation should be marked obtaining a bank certificate confirming the yearas cancelled to prevent it from being used again end balance. These are considered later. Typically, those charged with the governance of a company are the board of directors and the audit committee if one exists.

Thus the auditor sends a letter known as a management letter or letter of weakness to the board or to the audit committee, highlighting relevant matters. An example management letter is shown in Appendix 4. EXAM FOCUS Some exam questions ask you to draft excerpts from a management letter relating to a given scenario where you need to identify the weaknesses in the internal control system. A tabular format listing the weaknesses, implication of weaknesses and recommendations is generally the best approach for this type of question.

Audit evidence is all of the information used by the auditor in arriving at the conclusions on which the audit opinion is based. The auditor aims to confirm these financial statement assertions by performing audit procedures. EXAM FOCUS In the exam, you should use the above list to generate ideas for the audit tests to be carried out on particular transactions, account balances and disclosures.

This is a key area of the syllabus. Examples of accounting estimates:! Examples are land and buildings tangible noncurrent assets , purchased goodwill an intangible non-current asset and a long-term investment in the shares of another company an investment. Tangible Intangible Investments referred to as Property, plant and equipment All other assets, which are not intended for use on a continuing basis, must be classified as current assets. Occurrence are all non-current assets did all transactions take place?

Rights and Obligations the company? Cut-off are transactions reported in the correct accounting period? Existence do the assets exist sheet date? Control will be improved if the non-current asset register. If an investment is held for the short-term, then it is classified as a current asset.

IAS 39 requires most financial assets to be stated at fair value or at cost if fair value cannot be reliably measured. The most important aspects will be: -Existence agree recorded investments with ownership documents e. Written management representations may be necessary The auditor must ensure that all investment income, rights issues, bonus issues, etc have been received and accounted for by the company. Comparison of the percentages in each category with the previous year will indicate if debtors are taking longer to pay, so that perhaps a larger allowance for doubtful debts is required.

The auditor selects a sample of year-end customer balances from the client s receivables ledger. A letter is sent to each customer selected, asking them to confirm the balance they believe to be owing as at the year-end.

See Appendix 4 for an example wording of the letter. The letter may ask for please respond whether negative confirmation, you disagree. These should be vouched, following through reconciling items to bank statements after the year-end. Petty cash balances may be counted on a surprise basis, but the auditor should not spend too long on this area since risk is likely to be low, and the amounts involved likely to be immaterial to the financial statements as a whole.

The letter should be authorised by the client, then sent by the auditor to the client's bankers, to arrive around two weeks before the confirmation date usually the balance sheet date.

The bank's reply is sent directly to the auditor. The bank letter is an original document, in written form, received from an independent third party external to the client, so the quality of the audit evidence is high. The client may carry out a periodic inventory count, e. Items must be written down to NRV if this is below cost. Typical situations are: an increase in costs or a fall in selling price e.

Attend the inventory count to find out is the inventory correctly valued? Apply the IAS 2 principles The two tasks are inter-related, i. A liability should be recognised if it is probable that an outflow of economic benefits will result from the settlement of a present obligation, and the amount at which the settlement will take place can be measured reliably. If the recognition criteria are not satisfied, then the liability should not be recognised, but may be disclosed in a note as a contingent liability.

The auditor will find it harder to audit liabilities than assets since the related cash flow for a liability has not yet occurred. Key audit tests review cashbook after the year-end for payments that indicate that liabilities existed at the year-end review the reconciliation of the payables ledger control account to the total of the individual payables ledger balances for a sample of suppliers, perform a reconciliation of year-end supplier statements to payables ledger balances 78 FTC FOULKS LYNCH.

The client s suppliers will send regular statements to the client, stating the amount owed. There would be nothing to be gained from circularising these suppliers, since they would only confirm the figures already on the statements. Contingent liabilities are disclosed in a note to the accounts; actual liabilities are recognised in the accounts. To identify contingent liabilities, study the bank letter received from the bank, and examine the client s correspondence with their lawyers.

Consider including these matters in the representation letter to be required from the directors at the end of the audit. Thus, for example: ordinary shares are shown as equity on the balance sheet redeemable preference shares are shown as liabilities on the balance sheet The auditor should check that this classification has been made properly in accordance with IAS 32, and should note any changes in issued share capital in the year and check these to the cash book, board minutes, register of shareholdings, etc.

This enables the auditor to obtain and evaluate audit evidence about some characteristic of the items selected in order to form a conclusion about the population from which the sample is drawn. Audit sampling is usually preferable to testing all items, because:!

Statistical sampling involves random selection of a sample and then the use of probability theory to evaluate the sample results. Any other sampling approach is non-statistical sampling note that a selective testing approach such as examining all items over a certain amount, or all items that look unusual, is not sampling, so that the results cannot be projected to the entire population Selecting the sample statistical sampling requires random selection, e.

Controls General controls Application controls Manual, e. Programmed, Programmed, Manual, e. IAS 1 requires that an entity should prepare its financial statements on a going concern basis, unless:!

The auditor's responsibility is to consider the appropriateness of management's use of the going concern assumption, and whether there are adequate disclosures regarding uncertainties about the entity's ability to continue as a going concern. However, if doubts exist, the auditor s evaluation of management s assessment will be more extensive.

Typical indicators of going concern problems net current liabilities necessary borrowing facilities not agreed significant liquidity or cashflow problems substantial operating losses inability to pay debts e.

Overall review: compliance with statute and accounting standards? These matters are traditionally covered by filling in comprehensive checklists relating to the accounts. The accounting for subsequent events must follow IAS ! After the date of the audit report, the auditor has no duty to search for subsequent events. However, if he does learn of subsequent events, he should discuss the matter with the directors and consider whether amended financial statements are necessary.

Management representations are representations made by management to the auditor during the course of the audit, either unsolicited or in response to specific enquiries. Representations from management are a source of audit evidence. ISA requires that the auditor should obtain written representations from management on matters material to the financial statements when other sufficient appropriate audit evidence cannot reasonably be expected to exist.

An example of a management representation letter is shown in Appendix 4. The letter is addressed to the auditor, contains the necessary information, is signed by senior board members, and is normally dated on the same day as the audit report. The auditor must persuade management to adjust the accounts for material errors, otherwise a qualified audit report must be given.

Errors that are individually immaterial should be recorded on a summary of audit differences. This will reveal whether errors that are individually immaterial accumulate to require an adjustment that is material.

The standard type of report in which the auditor reports that he is happy with the accounts is called an unmodified report traditionally it has been referred to in the UK as an unqualified report. A modified report is any change from the standard wording: a modified but unqualified report means that the auditor is happy that the accounts give a true and fair view, etc, but he wishes to add an emphasis of matter paragraph highlighting a matter affecting the financial statements a modified and qualified report means that the auditor is not happy with some aspect of the accounts.

In a disclaimer of opinion, the auditor does not know whether the financial statements give a true and fair view. In an adverse opinion, the auditor believes that the financial statements do not give a true and fair view. The auditor should think carefully before giving a qualified audit report, since this may have serious implications for the client. The review report gives negative assurance, ie the reviewer reports whether anything has come to their attention to indicate that the financial statements do not give a true and fair view.

You should be familiar with the typical investigations of: corporate governance matters business risk control operational audits e. A properly functioning internal audit department is part of good corporate governance.

Internal audit enables management to perform proper risk assessments by properly understanding the strengths and weaknesses of all parts of the control systems in the business. While the appointment of external auditors to a large company is compulsory in most countries, internal auditors need only be appointed if management choose to do so. However there is no such regulation of internal audit reports. Typical elements would be: Title, identifying the addressee normally the audit committee Executive summary Summary of key findings and recommendations, including agreed action responsibilities and timescales Appendices of additional information and analyses EXAM FOCUS As there are no specific regulations for you to learn in this area, it is generally common sense.

Make sure that you know the principles of good report writing and how to apply them in a practical situation. So far, this book has concentrated on the audit of profit-seeking companies.