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- The auditor or any one closely connected with the firm should avoid accepting gifts in kind from the client or an officer of the client company, unless the value of the benefit is modest.
- Similarly, to strengthen independence, an audit practice or any one closely connected with it should not make loans to its client nor receive loans from clients.
- The auditor should be allocated free working space clear of management offices and only interacting with staff when necessary.
- The auditor should avoid unnecessary encounters with management outside office hours, unless the meeting is of an official nature, for as long as the auditor is the auditor of the client
Wilfykil answered the question on February 22, 2019 at 11:59
- Briefly explain the meaning of the following terms in relation to audit reports:
(i) Except for opinion.
(ii) Disclaimer of opinion(Solved)
Briefly explain the meaning of the following terms in relation to audit reports:
(i) Except for opinion.
(ii) Disclaimer of opinion
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain any three procedures for obtaining audit evidence.(Solved)
Identify and briefly explain any three procedures for obtaining audit evidence.
Date posted: February 22, 2019. Answers (1)
- In the context of the Companies Act (Cap. 486), outline the procedure for the removal of an auditor(Solved)
In the context of the Companies Act (Cap. 486), outline the procedure for the removal of an auditor
Date posted: February 22, 2019. Answers (1)
- Identify the program controls which should be inbuilt in a computerized accounting system(Solved)
Identify the program controls which should be inbuilt in a computerized accounting system
Date posted: February 22, 2019. Answers (1)
- State and control objectives generally associated with the processing of data in a computerized accounting environment.‘(Solved)
State and control objectives generally associated with the processing of data in a computerized accounting environment.‘
Date posted: February 22, 2019. Answers (1)
- State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds(Solved)
State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds
Date posted: February 22, 2019. Answers (1)
- (i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review(Solved)
(i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review
Date posted: February 22, 2019. Answers (1)
- Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.(Solved)
Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.(Solved)
Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small...(Solved)
Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small vats. The steel components are sourced from outside suppliers. The year end stock mainly consists of these steel components and finished items. As at 31 October 2004, the total stock was valued at Sh. 6,048,000 out of total assets of Sh. 19,200,000. This stock figure was obtained by a physical count as at 31 October 2004, and valuation by reference to purchase invoices and manufacturing cost estimates.
Required:
With reference to each of the matters listed below, state the work you would do to conclude whether the amount attributed to stock is fairly stated.
(a) Quantities
(b) Identification of stock items
(c) Condition of stock items
(d) Cut-off procedures
(e) Valuation of stock
Date posted: February 22, 2019. Answers (1)
- List any four advantages of standardized audit working papers(Solved)
List any four advantages of standardized audit working papers
Date posted: February 22, 2019. Answers (1)
- Identify the type of information audit trainees should include in the audit working papers.(Solved)
Identify the type of information audit trainees should include in the audit working papers.
Date posted: February 22, 2019. Answers (1)
- Provide audit trainees with guidelines on how they should prepare audit working papers.(Solved)
Provide audit trainees with guidelines on how they should prepare audit working papers.
Date posted: February 22, 2019. Answers (1)
- Explain the importance of audit working papers.(Solved)
Explain the importance of audit working papers.
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company(Solved)
Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain any four inherent limitations of an internal control system(Solved)
Identify and briefly explain any four inherent limitations of an internal control system
Date posted: February 22, 2019. Answers (1)
- What purpose does an internal control system serve in an organization?(Solved)
What purpose does an internal control system serve in an organization?
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain the three key elements of a good internal control system.(Solved)
Identify and briefly explain the three key elements of a good internal control system.
Date posted: February 22, 2019. Answers (1)
- In the context of the Companies Act (Cap. 486), state the rights of an auditor(Solved)
In the context of the Companies Act (Cap. 486), state the rights of an auditor
Date posted: February 22, 2019. Answers (1)
- Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client(Solved)
Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client
Date posted: February 22, 2019. Answers (1)