Get premium membership and access questions with answers, video lessons as well as revision papers.
(a) Advantages of using standardized working papers
• .Improves the efficiency with which they are prepared.
• They act as guidelines or instructions to audit staff and facilitate delegation Of work
• Ensures that all relevant issues in the audit area are addressed.
Disadvantages of standardized working papers
• Audit work becomes mechanical.
• Client's staff may become familiar with the method.
• initiative. of the audit staff may be stifled because the need to' exercise judgement in
preparing working papers is eliminated.
• It may become obsolete
• It may not be appropriate for all clients.
(b) Factors that would influence the acceptance of third party evidence:-
• The credibility of the source of third party, evidence for example information received
from a bank confirming the client's bank balance is credible.
• The relationship between the third party and the client. Where the third party is
independent of the client then such evidence, can be-accepted.
• Where evidence is sent directly to the auditor as opposed to being sent to the client first,
such evidence is more acceptable.
• Where the evidence corroborates other evidence obtained by the auditor for example
where a confirmation from a debtor agrees with the-amount in the client's debtors listing.
Kavungya answered the question on May 14, 2019 at 13:24
- An auditor should perform procedures to obtain information that is used to identify the risks of
material misstatement due to fraud".
Highlight the audit procedures you would...(Solved)
An auditor should perform procedures to obtain information that is used to identify the risks of
material misstatement due to fraud".
Highlight the audit procedures you would carry out to detect the following types of fraud:
i. The motor vehicle of an employee is covered through the insurance scheme of the
company's motor vehicles.
ii. The motor vehicle of an employee is repaired using the company's funds and the amount
appears as an expense in the accounting records.
Date posted: May 14, 2019. Answers (1)
- Distinguish between errors and frauds.(Solved)
Distinguish between errors and frauds.
Date posted: May 14, 2019. Answers (1)
- List two techniques that could be used by a firm to minimize errors.(Solved)
List two techniques that could be used by a firm to minimize errors.
Date posted: May 14, 2019. Answers (1)
- Highlight four types of fraud that could occur in an accounting and internal control system over
purchases and payable(Solved)
Highlight four types of fraud that could occur in an accounting and internal control system over
purchases and payable
Date posted: May 14, 2019. Answers (1)
- List the circumstances that indicate the presence of errors, irregularities and frauds in an entity(Solved)
List the circumstances that indicate the presence of errors, irregularities and frauds in an entity
Date posted: May 14, 2019. Answers (1)
- With the use of suitable examples, explain the following;
i. Errors
ii. Irregularities
iii. Frauds November 2013 Question Seven A(Solved)
With the use of suitable examples, explain the following;
i. Errors
ii. Irregularities
iii. Frauds November 2013 Question Seven A
Date posted: May 14, 2019. Answers (1)
- Propose three ways in which a company might prevent or minimise accounting errors.(Solved)
Propose three ways in which a company might prevent or minimise accounting errors.
Date posted: May 14, 2019. Answers (1)
- a) Explain the potential errors that could occur in the processing of sales transactions.
b) Highlight four preventive measures that could be put in place for...(Solved)
a) Explain the potential errors that could occur in the processing of sales transactions.
b) Highlight four preventive measures that could be put in place for the areas you have
identified in (a) above.
c) Identify three examples of discrepancies in the accounting records that could indicate
the possibility of fraud.
Date posted: May 14, 2019. Answers (1)
- The opening statement of ISA 315 paragraph 64 notes that "internal control no matter how well
designed and operated, can provide an entity with only reasonable...(Solved)
The opening statement of ISA 315 paragraph 64 notes that "internal control no matter how well
designed and operated, can provide an entity with only reasonable assurance about achieving the
entity's financial reporting objectives. The likelihood of achievement is affected by limitations
inherent to internal control".
With reference to above-statement, briefly explain the limitations inherent in an internal control
system.
Date posted: May 14, 2019. Answers (1)
- The risk of fraud in the sales systems of XYZ Ltd. has been assessed as higher than normal.
Briefly describe how the assessment would influence your...(Solved)
The risk of fraud in the sales systems of XYZ Ltd. has been assessed as higher than normal.
Briefly describe how the assessment would influence your work as an external auditor of XYZ
Ltd.
Date posted: May 14, 2019. Answers (1)
- Describe the audit procedures you would carry out when auditing a charity organisations:
i) Cash donations
ii) Non-cash donations(Solved)
Describe the audit procedures you would carry out when auditing a charity organisations:
i) Cash donations
ii) Non-cash donations
Date posted: May 14, 2019. Answers (1)
- The auditor has a duty to certify the amount of stock in the financial statement.
Outline the auditor's duties before stocktaking in a manufacturing enterprise.(Solved)
The auditor has a duty to certify the amount of stock in the financial statement.
Outline the auditor's duties before stocktaking in a manufacturing enterprise.
Date posted: May 14, 2019. Answers (1)
- Highlight seven limitations of an internal control system in an organisation.(Solved)
Highlight seven limitations of an internal control system in an organisation.
Date posted: May 14, 2019. Answers (1)
- a) Explain the effectiveness of the following controls in preventing fraud in an organisation
i. Segregation of duties.
ii. Physical controls.
b) Outline a suitable internal control system...(Solved)
a) Explain the effectiveness of the following controls in preventing fraud in an organisation
i. Segregation of duties.
ii. Physical controls.
b) Outline a suitable internal control system for wage payments
Date posted: May 14, 2019. Answers (1)
- Summarise four measures that a company could put in place for safeguarding its cash
balances(Solved)
Summarise four measures that a company could put in place for safeguarding its cash
balances
Date posted: May 14, 2019. Answers (1)
- State five controls of fixed assets in an organisation.(Solved)
State five controls of fixed assets in an organisation.
Date posted: May 14, 2019. Answers (1)
- Describe three cut-off procedures the auditor would perform on inventory at the period end.
Assume that inventory is a material amount in the financial statements.(Solved)
Describe three cut-off procedures the auditor would perform on inventory at the period end.
Assume that inventory is a material amount in the financial statements.
Date posted: May 14, 2019. Answers (1)
- Explain how the establishment Fan internal audit functions in a large manufacturing company
might prevent perpetration of errors and frauds.(Solved)
Explain how the establishment Fan internal audit functions in a large manufacturing company
might prevent perpetration of errors and frauds.
Date posted: May 14, 2019. Answers (1)
- 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)