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We are going to be doing previous Unisaquestion may 2013 for a ue3over three actually and the content isvery similar for three 7r2 so we'regoing to be using this as a revisionpaper for three 7r3but just know this was actually appliedthree on three paper so just when you'rereading through that just better thanone the start off by just reading thanrequired so you can see what's requestsrobust before we go reading through theparagraph the cat says describe thesubstantive procedures that you willperform to ensure that finished goodsare correctly valued at year-end now inreading a question like this is a fewthings you need to think about first ofall they asking for substantiveprocedures which means I'm not worriedabout controls another three 7:02 levelyou're going to be specially required toknow your substantive procedures reallywell and then secondly it asks aboutfinished goods so one thing you need tothink about if they say finished goodsclearly that means they're in amanufacturing environment they're notgoing to say finished goods if they buyand sell products so manufacturing andthen what do we know about manufacturingit's obviously a lot of elements makingup this process for example these rawmaterials that go into this they areoverheads and these things such as laborso already when we're going to be doingour substance procedures we can startthinking about how we're going to bebreaking our solution down then lastlywhen they talk about valued and here anend you're not worried about existencewe're not worried about completeness youwant to know that the value of ourproduct is correct and value as you allknow means cost times quantity quantityyou would get that edge of stock countsso if they mention anything in thescenario about a stock count wasperformed we can really use those sheetsto help us with the quantity side ofthings and then when I talk about coststhat's when we start thinking about allthose things I mentioned in the overhere to the labor the raw materials etcbreak that down and then go even furtherwhat else is involved in value thingslikedistance so is the indication that maybeour stock is value than to higher valueand we need to write it down or netrealisable value so selling prices andcost values all those things we need tobe taking into account because there arecertain information in the scenario thatrelates to pot two of the required I'mjust going to quickly go through clocktwo as well just so that we can keep itin the back of our minds as we arereading through the scenario so part twois going to ask you to describe theEssbase that you'll consider beforerelying on the work of the engineermarket events so bear that in mind isthere's a expert that the managementuses that we are going to need to assesslater on so as you begin moving throughthe scenario and you see his name comeup just remember that's going to be fourfive two so as we read through thescenario and what you'll see is it's nota very long scenario which means thatyou're going...
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