i. Size and complexity of client‘s entity: The amount of audit work may overwhelm audit staff later on despite proper planning, as a result of increasing audit and verification procedures, need to visit all branches etc.
ii. Auditor‘s other assignments: the auditor could have two client firms with same calendar/accounting year ends hence he faces a problem of staffing.
iii. Lack of management support: If the support the auditor was expecting from management is not forthcoming, he may have to change the audit plan, say, seek alternative evidence. This may mess up his whole plan.
iv. High Control Risk: if material mis-statements are not detected by the internal control system, the auditor may form a wrong opinion or have to review all his audit procedures which is time consuming.
Wilfykil answered the question on February 22, 2019 at 08:58
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You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?
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Date posted:
February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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Date posted:
February 22, 2019
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February 22, 2019
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Date posted:
February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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February 22, 2019
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Answers (1)
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(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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(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)
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Date posted:
February 22, 2019
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Answers (1)
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(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)
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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)