According to the Companies Act, the company accounts refers to the balance sheet and the profit and loss account but due to development in business practice and shareholders information needs, these are inadequate as to the information regarding financial position and performance of the company. Since most balance sheets and profit and loss accounts are summarized statements amplified by notes to the statements, the business community and the accountancy profession require that a cash flow statement as well as a statement of changes in equity be prepared. The terms company accounts and financial statements have the same meaning.
Wilfykil answered the question on April 11, 2019 at 05:11
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What is the definition an Audit?
(Solved)
What is the definition an Audit?
Date posted:
April 11, 2019
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Answers (1)
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What are the purposes of audit engagement letter?
(Solved)
What are the purposes of audit engagement letter?
Date posted:
March 13, 2019
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Answers (1)
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Difference between the responsibilities of internal auditors and external auditors for the prevention, detection and reporting of fraud and error
(Solved)
Difference between the responsibilities of internal auditors and external auditors for the prevention, detection and reporting of fraud and error
Date posted:
March 13, 2019
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Answers (1)
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What is auditing sampling?
(Solved)
What is auditing sampling?
Date posted:
March 7, 2019
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Answers (1)
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Briefly explain how an auditor verifies the following items in a computerized system.
(Solved)
Briefly explain how an auditor verifies the following items in a computerized system.
i) Standing data in a master file
ii) Alterations made in the computer programs.
Date posted:
February 23, 2019
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Answers (1)
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The computerization of business operations has posed many challenges to the auditor.
Explain the difficulties experienced by an auditor in each of the following situations:
(Solved)
The computerization of business operations has posed many challenges to the auditor.
Explain the difficulties experienced by an auditor in each of the following situations:
i) In the use of test packs.
ii) In on-line systems.
iii) When auditing the output of a complex computerized system.
Date posted:
February 23, 2019
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Answers (1)
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Explain the steps an auditor should take if he concludes that the client has made a departure from an accounting standard in the preparation of...
(Solved)
Explain the steps an auditor should take if he concludes that the client has made a departure from an accounting standard in the preparation of the financial statements
Date posted:
February 23, 2019
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Answers (1)
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Summarise the principal contents of a statement of directors‘ responsibilities to be included in financial statements
(Solved)
Summarise the principal contents of a statement of directors‘ responsibilities to be included in financial statements
Date posted:
February 23, 2019
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Answers (1)
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Outline the audit procedures an audit firm should follow in the verification of a manufacturing company‘s liabilities.
(Solved)
Outline the audit procedures an audit firm should follow in the verification of a manufacturing company‘s liabilities.
Date posted:
February 23, 2019
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Answers (1)
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Your audit firm, Kimani and Associates has been contracted by the government to audit the procurement system followed by the government.
(Solved)
Your audit firm, Kimani and Associates has been contracted by the government to audit the procurement system followed by the government.
Required:
i) Identify the likely risk areas that your firm may encounter in the audit
ii) Suggest possible measures the government can implement to strengthen the internal control system on procurements.
Date posted:
February 23, 2019
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Answers (1)
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Your audit senior has assigned you the responsibility of auditing the stock of your client, XYZ Supermarket Ltd. for the year ending 31 December 2005....
(Solved)
Your audit senior has assigned you the responsibility of auditing the stock of your client, XYZ Supermarket Ltd. for the year ending 31 December 2005. The company‘s stock take is carried out once a year in the month of November simultaneously for all the retail outlets.
Required:
a) State the audit assurances you would seek to obtain in the audit of stock.
b) Describe the audit procedures that you would perform in order to be satisfied as to the validity of the amount attributed to stock in the balance sheet of XYZ Supermarket Ltd.
c) Define the word ―bar coding and explain its importance to XYZ Supermarket Ltd.
Date posted:
February 23, 2019
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Answers (1)
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Explain two reasons why an auditor should consider materiality when selecting a sample size.
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Explain two reasons why an auditor should consider materiality when selecting a sample size.
Date posted:
February 23, 2019
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Answers (1)
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Identify the cases where an auditor is required to conduct a complete check of all the transactions and balances of a business
(Solved)
Identify the cases where an auditor is required to conduct a complete check of all the transactions and balances of a business
Date posted:
February 23, 2019
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Answers (1)
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Explain the reasons why an auditor is not required to carry out a complete check of all the transactions and balances of a business
(Solved)
Explain the reasons why an auditor is not required to carry out a complete check of all the transactions and balances of a business
Date posted:
February 23, 2019
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Answers (1)
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Briefly explain how the auditor can use each of the following methods of sample selection when carrying out his audit assignment
(Solved)
Briefly explain how the auditor can use each of the following methods of sample selection when carrying out his audit assignment
i) Stratified sampling
ii) Cluster sampling
iii) Haphazard sampling
iv) Block sampling
Date posted:
February 23, 2019
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Answers (1)
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Highlight the possible defences available to an auditor in a court of law who has been sued for failure to detect fraud in client‘s company
(Solved)
Highlight the possible defences available to an auditor in a court of law who has been sued for failure to detect fraud in client‘s company
Date posted:
February 23, 2019
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Answers (1)
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Explain the ways in which an auditor can minimize his potential liability for professional negligence
(Solved)
Explain the ways in which an auditor can minimize his potential liability for professional negligence
Date posted:
February 23, 2019
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Answers (1)
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Highlight the qualities required of the final accounts prepared by a client company
(Solved)
Highlight the qualities required of the final accounts prepared by a client company
Date posted:
February 23, 2019
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Answers (1)
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Outline the ways in which an auditor acquires knowledge about the client‘s business and industry
(Solved)
Outline the ways in which an auditor acquires knowledge about the client‘s business and industry
Date posted:
February 23, 2019
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Answers (1)
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Explain the matters that an auditor should take into account at the planning stage of an audit exercise
(Solved)
Explain the matters that an auditor should take into account at the planning stage of an audit exercise
Date posted:
February 23, 2019
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Answers (1)