I) Procedural audits entail a review of the company‘s procedures and records so as to ascertain whether they are accurate and reliable for decision making. These audits are ideal for organizations operating in dynamic business environments and companies whose operations are so technical and need to be updated over time. The audit concentrates on the review of operating procedures rather than on financial balances.
II) Balance sheet audits
These are audits in which the auditor starts his audit work from the balance sheet and tries to trace original entries to their final recording in a bid to prove their authencity. The auditor concentrates on proving the management assertions that are relevant to each of the balance sheet items. This audit approach is adopted when carrying out a special assignment where the auditor is required to concentrate on the verification of the assets and the liabilities. Very little time is spent in testing controls that management has put in place.
Wilfykil answered the question on February 22, 2019 at 06:19
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List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided.
(Solved)
List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided.
Date posted:
February 21, 2019
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Answers (1)
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Under what circumstances is one ineligible for appointment as an auditor of a company?
(Solved)
Under what circumstances is one ineligible for appointment as an auditor of a company?
Date posted:
February 21, 2019
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Answers (1)
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You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether...
(Solved)
You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether better results can be obtained through statistical techniques.
Required:
a) State the steps you would take in order to test the vouchers for the errors.
b) Why is it not satisfactory to pick vouchers from a limited period?
c) State under what circumstances statistical sampling is a good technique
Date posted:
February 21, 2019
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Answers (1)
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Outline the statutory provisions with regard to duties of external auditors
(Solved)
Outline the statutory provisions with regard to duties of external auditors
Date posted:
February 21, 2019
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Answers (1)
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Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
(Solved)
Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
Date posted:
February 21, 2019
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Answers (1)
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The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit...
(Solved)
The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit procedures
iii. Events after the date of the audit report.
Required:
a) In the context of subsequent events, what is the significance of the data of the auditor‘s report?
b) Outline the audit procedures considered necessary between the balance sheet date and the date of the auditor‘s report.
c) Summarise the appropriate actions of the auditor regarding events after the date of the audit report.
Date posted:
February 21, 2019
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Answers (1)
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Write in point form an audit programme to cover salary and wages of a small size firm.
(Solved)
Write in point form an audit programme to cover salary and wages of a small size firm.
Date posted:
February 21, 2019
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Answers (1)
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Does the auditor require a codified definition of ?reasonable care and skill or should this be left to professional judgment? Explain
(Solved)
Does the auditor require a codified definition of ―reasonable care and skill or should this be left to professional judgment? Explain
Date posted:
February 21, 2019
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Answers (1)
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Explain the auditor‘s planning process when planning for an audit of a new client.
(Solved)
Explain the auditor‘s planning process when planning for an audit of a new client.
Date posted:
February 21, 2019
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Answers (1)