- The level of experience and competence of the staff;
- Whether the staff is independent of the client;
- Whether the staff has appropriate training in the industry;
- The availability of the staff through out the duration of the audit
Wilfykil answered the question on February 22, 2019 at 07:13
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List two advantages and two disadvantages of using standardised audit programmes during audit assignments
(Solved)
List two advantages and two disadvantages of using standardised audit programmes during audit assignments
Date posted:
February 22, 2019
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Answers (1)
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Briefly explain how an audit firm may use third party confirmations to provide evidence in relation to six difference balance sheet items
(Solved)
Briefly explain how an audit firm may use third party confirmations to provide evidence in relation to six difference balance sheet items
Date posted:
February 22, 2019
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Answers (1)
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List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
(Solved)
List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
Date posted:
February 22, 2019
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Answers (1)
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Identify the circumstances when it is appropriate to use only a substantive approach in an audit and when a combination of compliance and substantive tests...
(Solved)
Identify the circumstances when it is appropriate to use only a substantive approach in an audit and when a combination of compliance and substantive tests should be used
Date posted:
February 22, 2019
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Answers (1)
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State and briefly explain the action auditors should take if the management refuses to provide a letter of representation.
(Solved)
State and briefly explain the action auditors should take if the management refuses to provide a letter of representation.
Date posted:
February 22, 2019
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Answers (1)
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Identify the audit procedures which would need to be carried out in order to identify material post – balance sheet events.
(Solved)
Identify the audit procedures which would need to be carried out in order to identify material post – balance sheet events.
Date posted:
February 22, 2019
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Answers (1)
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Explain the nature and purpose of a post-audit review
(Solved)
Explain the nature and purpose of a post-audit review
Date posted:
February 22, 2019
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Answers (1)
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Distinguish between a procedural audit and a balance sheet audit
(Solved)
Distinguish between a procedural audit and a balance sheet audit
Date posted:
February 22, 2019
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Answers (1)
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Identify and list the responsibilities of company directors in relation to the company‘s
accounting system
(Solved)
Identify and list the responsibilities of company directors in relation to the company‘s
accounting system
Date posted:
February 22, 2019
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Answers (1)
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Explain how auditors distinguish their responsibility from those of the directors in respect of financial statements
(Solved)
Explain how auditors distinguish their responsibility from those of the directors in respect of financial statements
Date posted:
February 22, 2019
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Answers (1)
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State the basic element of the scope paragraph of an audit report
(Solved)
State the basic element of the scope paragraph of an audit report
Date posted:
February 22, 2019
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Answers (1)
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Explain five factors which would indicate to the auditor that the going concern assumption of the business entity he is auditing is threatened
(Solved)
Explain five factors which would indicate to the auditor that the going concern assumption of the business entity he is auditing is threatened
Date posted:
February 21, 2019
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Answers (1)
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Many auditors now use laptops computers to perform various audit tasks. However, if audit
firms use laptop computers they risk data being corrupted and appropriate controls...
(Solved)
Many auditors now use laptops computers to perform various audit tasks. However, if audit firms use laptop computers they risk data being corrupted and appropriate controls must therefore be put in place to prevent the corruption of data.
a) Explain six ways which auditors can use laptop computers in their audit work (other than computer-assisted audit techniques).
b) Explain the computer assisted audit techniques listed below:
i. Embedded audit facilities.
ii. Integrated test facilities.
c) Briefly describe two types of software that might be used by auditors in their work other than Computer Assisted Audit techniques.
d) Describe the controls that auditors should implement when using laptop computers on audits.
Date posted:
February 21, 2019
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Answers (1)
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One of the responsibilities of the directors of a company is to establish strong internal controls to safeguard the assets of the firm.
(Solved)
One of the responsibilities of the directors of a company is to establish strong internal controls to safeguard the assets of the firm.
Required:
a) State the audit objectives of internal controls on fixed assets.
b) Set out the audit procedures you would follow to verify directors‘ fees.
c) What procedures would you apply to verify the extension of a building that has been constructed by the client during the year?
Date posted:
February 21, 2019
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Answers (1)
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Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item.
(Solved)
Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item.
-Order number (a code 2221 is used for items like electricity)
-Supplier name
-Supplier code number
-First four letters of nominal account name (entered on invoice by purchase department manager)
-Nominal account code (entered by purchase department manager) Date
-Goods inward note
-number Net amount
-VAT amount
-Gross amount
Required:
a) Suggest manual operation and controls which might previously have applied to these invoices.
b) Suggest input controls that might be applied by the program to these items.
c) List some audit tests that could be applied to these items indicating the purpose of each test and the relevant audit evidence obtained.
Date posted:
February 21, 2019
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Answers (1)
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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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In the course of the audit of ABC Stationers Ltd. for the year ended 30 June 2001, you have noted and recorded in the audit...
(Solved)
In the course of the audit of ABC Stationers Ltd. for the year ended 30 June 2001, you have noted and recorded in the audit working papers, the following evidential matters:
1. Flowcharts of the company‘s payroll prepared by your audit assistant backed up by tests of controls.
2. An oral statement by the production director that the expected working life of plant acquired during the year is ten years.
3. A letter to the managing director from the company‘s bank manager indicating that the bank intends to extend overdraft facilities for a period of one year.
4. A list of items of inventory counted by a member of your audit team during observation of the company‘s annual stock count.
5. A letter from a customer to your firm in reply to a confirmation request indicating agreement with the balance recorded in the books of ABC Stationers Ltd.
Required:
a) With respect to each matter listed above, explain its relevance to the overall audit objective of forming an opinion and reporting on the financial statements.
b) Explain your judgment on the reliability of the audit evidence obtained in five ways listed above.
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 received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001
(Solved)
You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001
Required:
a) Explain the preliminary procedures you would carry out upon your appointment.
b) What is the importance of a preliminary review?
c) Why is it important for the auditor to hold discussions with the client‘s senior staff?
d) State why it is important for an incoming auditor to hold consultations with the outgoing auditor.
Date posted:
February 21, 2019
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Answers (1)
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You have been appointed the auditor of United Millers Company Limited, a medium manufacturing company which is quoted on the stock exchange.
(Solved)
You have been appointed the auditor of United Millers Company Limited, a medium manufacturing company which is quoted on the stock exchange.
Required:
a) List the important matters which must be included in the letter of engagement.
b) Explain the purpose of such a letter
Date posted:
February 21, 2019
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Answers (1)