(i) Forming an Opinion
The main objective to enable auditors to express an opinion as to whether the mfinancial statements give a true and fair view of the state of affairs of the company in question, and whether they‘ve been prepared in accordance with the applicable reporting framework.
(ii) Transparency
Audited financial information portray a positive image of an entity. It shows to the public what the entity is in existence for and the purpose of its activities. This reduces suspicion and improves relations with external entities.
(iii) Detection and Prevention of Frauds
Though not the principle objective of an audit the procedures set out by the auditor to achieve this objective highlights to management the weaknesses of the company‘s control system and puts on alert anyone who may have intention of defrauding the
company.
(iv) Assistance in clerical accounting work and advice
The auditor should ideally not involve himself in the operations of the entity. He should not take any part of decision making and neither should he make it a primary concern to prepare the entity‘s financial statements. However, in the course of his work, the auditor could assist client staff in basic accounting functions and once in a while advice management on proper course of actions to take depending on circumstances in question
Wilfykil answered the question on February 22, 2019 at 08:27
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Briefly explain, giving an example in each case, five functions of an audit software interrogation programme
(Solved)
Briefly explain, giving an example in each case, five functions of an audit software interrogation programme
Date posted:
February 22, 2019
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Answers (1)
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Identify five sections in which information technology can be used to enhance the administration procedures and controls over an audit
(Solved)
Identify five sections in which information technology can be used to enhance the administration procedures and controls over an audit
Date posted:
February 22, 2019
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Answers (1)
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Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records
(Solved)
Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records
Date posted:
February 22, 2019
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Answers (1)
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Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit.
(Solved)
Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit.
Date posted:
February 22, 2019
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Answers (1)
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Explain the factors that external auditors should consider in determining whether the financial statements of a limited company show a true and fair view
(Solved)
Explain the factors that external auditors should consider in determining whether the financial statements of a limited company show a true and fair view
Date posted:
February 22, 2019
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Answers (1)
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Auditors may be liable to shareholders and other parties who may have relied on the financial statements upon which the auditors have expressed an opinion....
(Solved)
Auditors may be liable to shareholders and other parties who may have relied on the financial statements upon which the auditors have expressed an opinion. This is because the auditors are generally taken as owing a ―duty of care those parties and they
could be liable in the tort of negligence if they failed that duty.
Required:
(a) With reference to the external audit assignment, explain the meaning if the term ―duty of care
(b) Briefly explain the auditors‘ general responsibility. With regard to the prevention and detection of fraud and errors.
(c) State and briefly explain five possible measures that auditing firms should take in order to avoid legal actions for negligence against them.
Date posted:
February 22, 2019
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Answers (1)
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Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
(Solved)
Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
Date posted:
February 22, 2019
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Answers (1)
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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)