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• By viewing company's actual performance against budgeted perfornwnce. possibilities of
errors are highlighted.
• Carry out risk assessments.
• Continuous reviews help prevent errors and fraud.
• Internal auditor ensures proper books of accounts are always maintained.
• It undertakes investigations in areas suspected to be prone to errors and fraud.
• It follows, upon the recommendation raised by external auditors.
• They advise management on appropriate areas of instituting controls to prevent errors and
fraud
Kavungya answered the question on May 14, 2019 at 13:00
- For each of the following assets, suggest seven internal control procedures that the owner of a
retail hardware shop should implement to minimize possible losses through...(Solved)
For each of the following assets, suggest seven internal control procedures that the owner of a
retail hardware shop should implement to minimize possible losses through errors and fraud;
i. Cash
ii. inventory
Date posted: May 14, 2019. Answers (1)
- Explain four characteristics of a small entity that make it difficult for the auditor to rely on the
entity's system of internal control(Solved)
Explain four characteristics of a small entity that make it difficult for the auditor to rely on the
entity's system of internal control
Date posted: May 14, 2019. Answers (1)
- Explain the internal controls necessary in each of the following areas:
(i) Sales.
(ii) Purchases.
(iii) Cash.(Solved)
Explain the internal controls necessary in each of the following areas:
(i) Sales.
(ii) Purchases.
(iii) Cash.
Date posted: May 14, 2019. Answers (1)
- a) Outline six matters that should be checked while vouching a sales invoice.
b) As the audit assistant in XYZ Ltd., identify six procedures that you...(Solved)
a) Outline six matters that should be checked while vouching a sales invoice.
b) As the audit assistant in XYZ Ltd., identify six procedures that you would carry out to
verify payments from petty cash.
c) Accounting and internal control systems cannot provide management with conclusive
evidence that objectives are reached because of their inherent limitations.
With reference to the above statement, discuss four inherent limitations of accounting and
internal control systems.
Date posted: May 14, 2019. Answers (1)
- (a) Describe five purposes of an internal control system.
(b) Explain five actions that an auditor should take if the internal control system is found to...(Solved)
(a) Describe five purposes of an internal control system.
(b) Explain five actions that an auditor should take if the internal control system is found to be
weak.
Date posted: May 14, 2019. Answers (1)
- a) Explain the matters that an auditor should consider during the planning stage °Ian audit
of a continuing client.
b) Define the following audit risks:
i. Inherent risk:
ii....(Solved)
a) Explain the matters that an auditor should consider during the planning stage °Ian audit
of a continuing client.
b) Define the following audit risks:
i. Inherent risk:
ii. Control risk.
c) Briefly describe the procedure an auditor could use to assess the risks in (b above in the
course of his audit of a company.
Date posted: May 14, 2019. Answers (1)
- Outline four challenges that an audit firm might face in planning an audit.(Solved)
Outline four challenges that an audit firm might face in planning an audit.
Date posted: May 14, 2019. Answers (1)
- Explain how the external auditor reduces audit time by relying on the work of the client's internal
audit function.(Solved)
Explain how the external auditor reduces audit time by relying on the work of the client's internal
audit function.
Date posted: May 14, 2019. Answers (1)
- Explain three reasons that could lead to the failure of an audit planning process.(Solved)
Explain three reasons that could lead to the failure of an audit planning process.
Date posted: May 14, 2019. Answers (1)
- Summarize six advantages of the business risk approach in auditing.(Solved)
Summarize six advantages of the business risk approach in auditing.
Date posted: May 14, 2019. Answers (1)
- Explain the importance of audit planning.(Solved)
Explain the importance of audit planning.
Date posted: May 14, 2019. Answers (1)
- Describe eight benefits of audit documentation.(Solved)
Describe eight benefits of audit documentation.
Date posted: May 14, 2019. Answers (1)
- In the context of International Standards on Auditing (ISA) 300 (Planning and Audit of Financial
Statements);
a) Explain when audit planning takes place
b) List four items that...(Solved)
In the context of International Standards on Auditing (ISA) 300 (Planning and Audit of Financial
Statements);
a) Explain when audit planning takes place
b) List four items that should be included in audit planning memorandum
c) i) Suggest four practical problems that could be encountered in implementing audit
plan.
ii) Explain four ways in which you would mitigate the effects of the problems
identified in (c) (i) above
Date posted: May 14, 2019. Answers (1)
- a) Highlight the three components of audit risk.
b) Explain six objectives of planning the audit work.
c) Describe four sources of information that could assist in...(Solved)
a) Highlight the three components of audit risk.
b) Explain six objectives of planning the audit work.
c) Describe four sources of information that could assist in audit planning.
Date posted: May 14, 2019. Answers (1)
- a) Identify five additional matters that an external auditor should take into consideration
when preparing an audit plan for a new client.
b) An auditor shall establish...(Solved)
a) Identify five additional matters that an external auditor should take into consideration
when preparing an audit plan for a new client.
b) An auditor shall establish an overall audit strategy that guides the development of the
audit plan. With reference to the above statement, discuss five matters that the auditor
should consider when establishing the overall audit strategy.
Date posted: May 14, 2019. Answers (1)
- Explain why an auditor should prepare a letter of engagement(Solved)
Explain why an auditor should prepare a letter of engagement
Date posted: May 14, 2019. Answers (1)
- Differentiate the role of an accountant from that of an auditor.(Solved)
Differentiate the role of an accountant from that of an auditor.
Date posted: May 14, 2019. Answers (1)
- i) Outline two purposes of conducting interim audits.
ii) Evaluate the drawbacks of conducting an interim audit in a business.(Solved)
i) Outline two purposes of conducting interim audits.
ii) Evaluate the drawbacks of conducting an interim audit in a business.
Date posted: May 14, 2019. Answers (1)
- (a) Highlight -five weaknesses of an audit conducted at the end of the financial period.
(b) Explain three fundamental differences between the work of internal auditors...(Solved)
(a) Highlight -five weaknesses of an audit conducted at the end of the financial period.
(b) Explain three fundamental differences between the work of internal auditors and external
auditors.
Date posted: May 14, 2019. Answers (1)
- (a) It is essential that all members of an audit team fully understand the client's industry,
business and organisation.
With reference to the above statement, list the...(Solved)
(a) It is essential that all members of an audit team fully understand the client's industry,
business and organisation.
With reference to the above statement, list the different ways that the knowledge implied
above could be obtained.
(b) Explain the meaning of the following terms with reference to auditing:
(i) Due diligence.
(ii) Forensic auditing.
Date posted: May 14, 2019. Answers (1)