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i) That they use acceptable accounting principles which have been consistently applied and are appropriate to business
ii) The results of operations; income statement, state of affairs; Balance sheets and all other information included in financial statements are compatible with each other and with auditor‘s knowledge of enterprise
iii) There is adequate disclosure of all appropriate matters and the information contained in financial statements is suitably classified and presented e.g. a loan to subsidiary should not be described as cash at bank
iv) There is compliance with statutory requirements e.g. the Companies Act
v) There is compliance with other relevant regulations e.g. stock exchange regulations.
vi) There is compliance with accounting standards.
Wilfykil answered the question on February 23, 2019 at 06:30
- The final stage of an audit includes an overall review of the financial statements.
Explain the procedures that the auditor should adopt for the final review(Solved)
The final stage of an audit includes an overall review of the financial statements.
Explain the procedures that the auditor should adopt for the final review
Date posted: February 23, 2019. Answers (1)
- Outline the ways in which an auditor acquires knowledge about the client‘s business and industry(Solved)
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Date posted: February 23, 2019. Answers (1)
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Date posted: February 23, 2019. Answers (1)
- Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005,...(Solved)
Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005, Ujenzi Ltd‘s payroll system is fully computerized
Required:
(a) Explain four ways in, which the use of a computerized payroll system by Ujenzi Ltd, would affect your work as the auditor.
(b) Explain three controls which should be instituted by Ujenzi Ltd to ensure that only authorized persons are allowed access to information on personal files and to input updates for the calculation of wages.
(c) Outline how audit tests could be performed ―around the computer in relation to Ujenzi Ltd‘s payroll
(d) List any two fraudulent activities likely to be perpetrated in relation to Ujenzi Ltd‘s payroll
Date posted: February 22, 2019. Answers (1)
- Outline the procedures an external auditor should follow if he suspects that fraud; or error have been perpetrated(Solved)
Outline the procedures an external auditor should follow if he suspects that fraud; or error have been perpetrated
Date posted: February 22, 2019. Answers (1)
- Outline the respective responsibilities of an entity‘s management and the external auditor with respect to the prevention and detection of fraud and error(Solved)
Outline the respective responsibilities of an entity‘s management and the external auditor with respect to the prevention and detection of fraud and error
Date posted: February 22, 2019. Answers (1)
- List the procedures you would follow to verify the following items:
(i) Petty cash balance.
(ii) Revaluation reserve.
(iii) Copyrights(Solved)
List the procedures you would follow to verify the following items:
(i) Petty cash balance.
(ii) Revaluation reserve.
(iii) Copyrights
Date posted: February 22, 2019. Answers (1)
- Cash in hand and cash at bank are commonly referred to as liquid assets. Because of this liquidity, these assets represent the most vulnerable of...(Solved)
Cash in hand and cash at bank are commonly referred to as liquid assets. Because of this liquidity, these assets represent the most vulnerable of all the assets of an entity. You have recently been employed by Korir and Associates (Certified Public
– Accountants) as an audit assistant. During your first audit assignment at Viwanda Ltd you have been allocated the audit of cash in hand and cash at bank.
Required
(i) State and explain any the audit procedures you would undertake in order to determine whether or not there has been any misappropriation of cash.
(ii) Explain any five controls over cash you would expect to be instituted by a business entity in order to minimize cases of embezzlement of cash
Date posted: February 22, 2019. Answers (1)
- The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.(Solved)
The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.
Required:
(a) State four benefits that an auditor would obtain from working papers that satisfy the above requirement.
(b) List five items of information you would expect to be contained in a permanent audit file and explain why each of these items of information should be readily available.
(c) In the audit or purchases, list four examples of the type of information that would be contained in the detailed audit working papers.
(d) Give any two reasons why a director should examine the directors‘ minute book
Date posted: February 22, 2019. Answers (1)
- Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission....(Solved)
Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission.....
Date posted: February 22, 2019. Answers (1)
- Briefly explain the methods which an auditor might use to ascertain a client‘s internal control system.(Solved)
Briefly explain the methods which an auditor might use to ascertain a client‘s internal control system.
Date posted: February 22, 2019. Answers (1)
- State the factors that the external auditor should consider before placing reliance on the work of the internal auditor(Solved)
State the factors that the external auditor should consider before placing reliance on the work of the internal auditor
Date posted: February 22, 2019. Answers (1)
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Outline and briefly explain the procedures that the internal auditor can conduct on behalf of the external auditor.
Date posted: February 22, 2019. Answers (1)
- Identify and explain the functions of the internal audit department in an organization.(Solved)
Identify and explain the functions of the internal audit department in an organization.
Date posted: February 22, 2019. Answers (1)
- List and briefly explain the main functions of an audit committee(Solved)
List and briefly explain the main functions of an audit committee
Date posted: February 22, 2019. Answers (1)
- Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission(Solved)
Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission
Date posted: February 22, 2019. Answers (1)
- 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. Answers (1)
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Explain the challenges that auditors face in the process of being independent
Date posted: February 22, 2019. Answers (1)
- 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. Answers (1)
- 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)