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Working papers provide the audit evidence. They can be categorized into:i. Auditors‘ prepared working papers.ii. Client‘s schedules used as working papers.iii. Audit programmes.Working papers are then organized into files usually referred to as either current files of permanent files.Required:a) What details should each working paper which is prepared by an auditor indicate?b) What details should each client schedule used as a working paper indicate?c) What details should an audit programme indicate? d) With appropriate illustrations, differentiate the use and contents of a permanent file from a current file and write brief notes on the evidence that is provided by working papers.
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Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;- The effectiveness of the computer controls over sales and debtorsRequired: Set out the points, which you would raise, in your preliminary evaluation of controls over sales and debtors
Date posted: February 21, 2019 . Answers (1)
It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements.Required:a) Under statutory provision, what are the main contents of the auditors‘ report?b) Explain how the international standards on auditing attempt to ensure that the report of the auditors is clearly understood.c) Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
The cashier of a firm who also acts a bookkeeper has been suspected of dishonesty. The books have not been audited for the last nine months. You have been asked to investigate the records to establish whether the cashier has committed a fraudRequired:Outline how you would proceed with the investigation
You are an audit senior in a firm of practicing accountants and your manager has gone out for an urgent meeting with a partner. Mr. Charo, a manager with Charo and Company, a wholesale business has come to your office with a request that your firm becomes their auditorsRequired:a) Describe to Mr. Charo the legal, ethical and practical factors your firm would consider before accepting the appointment.b) Explain to Mr. Charo the qualification and disqualification of an accounting firm under the provisions of the Companies Act to become auditors.
Discuss the proposition that the ‗expectations gap‘ has arisen because of the public‘s ignorance and should therefore be resolved by the public themselves
Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.
Does the auditor require a codified definition of ―reasonable care and skill or should this be left to professional judgment? Explain
Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer.
How does audit planning assist in the conduct of an audit?
Explain the auditor‘s planning process when planning for an audit of a new client.