- Nature and source of the evidence
This includes the reliability, relevancy and sufficiency of the audit evidence and whether
they originated from the company, 3'd party or observation by the auditor himself.
- Form of the evidence
The auditor should consider the way the way the evidence is presented in this include
oral, visual or documentary evidence. In terms of the quality of the evidence the auditor
would consider mostly the documentary evidence.
- Nature of the accounting systems and related controls
The auditor would consider if the accounting systems instituted by the management are
strong to detect and prevent errors and frauds when evaluating the audit evidence.
- Auditor's experience with the entity
If the auditor has a vast experience with the organization he will be able to evaluate the
evidence obtain effectively well compared with the auditor who does not have experience
with the management.
- Entity's management integrity
If the integrity of the management is questionable the auditor would have to thorough
scrutinize the audit evidence obtain from the management to confirm for their reliability
- Risks and material misstatements
- Time and cost involved.
- Accuracy and reliability of the financial statement.
- Effectiveness of the internal audit department.
Kavungya answered the question on May 14, 2019 at 13:37
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Justify the use of previous year's financial statements while carrying out an audit assignment.
(Solved)
Justify the use of previous year's financial statements while carrying out an audit assignment.
Date posted:
May 14, 2019
.
Answers (1)
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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
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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
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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)