- Previous year's financial statement will give light to the auditor of the expectation on the
disclosure of the current financial statement thus aid auditor's planning.
- Use of previous year's financial statement reduces auditor's risks in the current financial
statement.
- The auditor \N ill be able to find out the likely areas of difficult in his audit work while
carrying out an auditing assignment while using the previous year financial statement.
- The auditor will be able to compare the current and the previous year financial statement
and determine for any material change in the business and the reason for such changes
this will enable him to report on the position of the business as a going concern.
- The use of previous year's financial statement will enable the auditor to evidence that will
support him to report on the true and fair view of the current financial statement.
Kavungya answered the question on May 14, 2019 at 13:32
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a) List four reasons for preparing audit working papers
b) Identify four types of information you would expect to -find in the following:-
i. Permanent audit file
ii....
(Solved)
a) List four reasons for preparing audit working papers
b) Identify four types of information you would expect to -find in the following:-
i. Permanent audit file
ii. Current audit file
Date posted:
May 14, 2019
.
Answers (1)
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a) Explain six limitations of gathering audit evidence.
b) Summarise three considerations that must be made for the external auditor to rely on the
work of the...
(Solved)
a) Explain six limitations of gathering audit evidence.
b) Summarise three considerations that must be made for the external auditor to rely on the
work of the internal auditor.
c) In view of the financial reporting framework, explain five considerations that the auditor
should make when forming an opinion.
Date posted:
May 14, 2019
.
Answers (1)
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a) Standardisation of working papers refers to a predetermined Format of presenting and
documenting audit findings.
With reference to the above statement, discuss three advantages and three...
(Solved)
a) Standardisation of working papers refers to a predetermined Format of presenting and
documenting audit findings.
With reference to the above statement, discuss three advantages and three disadvantages
of standardized working papers.
b) Explain Four factors that could influence the acceptance of evidence obtained from a
third party.
Date posted:
May 14, 2019
.
Answers (1)
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Distinguish between errors and frauds.
(Solved)
Distinguish between errors and frauds.
Date posted:
May 14, 2019
.
Answers (1)
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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)
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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)
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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)
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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)
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Describe eight benefits of audit documentation.
(Solved)
Describe eight benefits of audit documentation.
Date posted:
May 14, 2019
.
Answers (1)
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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)
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(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)
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(a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's
duties and rights.
Required;
List four duties of the auditor...
(Solved)
(a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's
duties and rights.
Required;
List four duties of the auditor of a limited liability company that can be inferred From
Section 162 and 7th Schedule of the Companies Act.
(b) Differentiate between a continuous audit and an interim audit.
Date posted:
May 14, 2019
.
Answers (1)