-The auditor once hired by the shareholders has the obligation of carrying out his duties as per the contract signed and this involves protecting the interests of the owners of the company. He is to carry out his duties with the competence and independence required by his profession.
-The auditor enters into a contract with the owners of the client company. This means that he is answerable to them for any matter connected with the audit of the client‘s accounts. He therefore owes the owners of the business(shareholders) a duty of care since he is expected to perform his duty with diligence.
Wilfykil answered the question on February 22, 2019 at 12:04
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Outline the ways in which an auditor may be held criminally liable in the course of his audit duties
(Solved)
Outline the ways in which an auditor may be held criminally liable in the course of his audit duties
Date posted:
February 22, 2019
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Answers (1)
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Explain the challenges that auditors face in the process of being independent
(Solved)
Explain the challenges that auditors face in the process of being independent
Date posted:
February 22, 2019
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Answers (1)
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Suggest how the independence of an auditor may be strengthened
(Solved)
Suggest how the independence of an auditor may be strengthened
Date posted:
February 22, 2019
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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List any four advantages of standardized audit working papers
(Solved)
List any four advantages of standardized audit working papers
Date posted:
February 22, 2019
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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Explain the importance of audit working papers.
(Solved)
Explain the importance of audit working papers.
Date posted:
February 22, 2019
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)