(i) Land:
• Lease agreements.
• Report from specialists or experts e.g. Land surveyors.
• Confirmation from registrar of lands
• Title deeds and letters of allotment.
• Local authority receipts.
(ii) Rent expense:
• Rent agreements, invoice from the landlords and revenue authority returns.
• Use of positive and negative confirmations; i.e. the landlord confirmation_
• Report from specialists or experts. e.g. valuer
(iii) Motor vehicles:
• Seller of the motor vehicle.
• Report from specialists or experts i.e. Vehicle valuer.
• Use of positive and negative confirmations i.e. Registrar of vehicles, revenue authority.
• Insurance policy of the company taken.
• Bank correspondences if they hold custody of the log book.
Kavungya answered the question on May 14, 2019 at 13:55
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a) Argue the case for carrying out risk analysis during an audit
b) Describe eight procedures for audit of inventory
(Solved)
a) Argue the case for carrying out risk analysis during an audit
b) Describe eight procedures for audit of inventory
Date posted:
May 14, 2019
.
Answers (1)
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a) List four audit .procedures you would perform on credit notes issued to customers upon
return of goods
b) Explain why it is important for an auditor...
(Solved)
a) List four audit .procedures you would perform on credit notes issued to customers upon
return of goods
b) Explain why it is important for an auditor to send a bank letter to his client's bank.
c) Summarize any six procedures that are undertaken by an auditor while obtaining
confirmation from a client's bank.
Date posted:
May 14, 2019
.
Answers (1)
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Briefly explain the following terms.
i) Analytical procedures
ii) Audit opinion.
iii) Audit working papers
(Solved)
Briefly explain the following terms.
i) Analytical procedures
ii) Audit opinion.
iii) Audit working papers
Date posted:
May 14, 2019
.
Answers (1)
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a. List eight factors that an auditor should take into consideration when determining the size
of an audit sample.
b) Citing two examples in each case, describe...
(Solved)
a. List eight factors that an auditor should take into consideration when determining the size
of an audit sample.
b) Citing two examples in each case, describe the quality of the following types of audit
evidence:
(i) Evidence originated by the auditor.
(ii) Evidence created by third parties.
(iii) Evidence created by the management of the client.
Date posted:
May 14, 2019
.
Answers (1)
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a) Explain the importance of the going concern assumption in the preparation of the annual
financial statements of entities.
b) List four statutory, books that would be...
(Solved)
a) Explain the importance of the going concern assumption in the preparation of the annual
financial statements of entities.
b) List four statutory, books that would be of interest to the auditor.
c) Describe the substantive procedures the auditor would apply to the following records:
i. The accounting records
ii. The company's minute book
Date posted:
May 14, 2019
.
Answers (1)
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Describe the general considerations which the auditors must bear in mind when evaluating audit
evidence.
(Solved)
Describe the general considerations which the auditors must bear in mind when evaluating audit
evidence.
Date posted:
May 14, 2019
.
Answers (1)
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a) Briefly describe the audit tests you would carry out to verify trade accounts receivable
at the year end.
b) Describe the audit work you would carry...
(Solved)
a) Briefly describe the audit tests you would carry out to verify trade accounts receivable
at the year end.
b) Describe the audit work you would carry out on the following replies to a receivables
circularisation:
(i) Balance agreed by the customer.
(ii) Balance not agreed by customer.
(iii) Customer does not reply to the confirmation letter.
Date posted:
May 14, 2019
.
Answers (1)
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Describe how you would vouch a loan to an employee of Sh. 100,000 shown in the account of a
client.
(Solved)
Describe how you would vouch a loan to an employee of Sh. 100,000 shown in the account of a
client.
Date posted:
May 14, 2019
.
Answers (1)
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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
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Answers (1)
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Explain five benefits of an asset register to the auditor.
(Solved)
Explain five benefits of an asset register to the auditor.
Date posted:
May 14, 2019
.
Answers (1)
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Discuss five assertions that an auditor should consider during the conduct of substantive
procedures in an audit
(Solved)
Discuss five assertions that an auditor should consider during the conduct of substantive
procedures in an audit
Date posted:
May 14, 2019
.
Answers (1)
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a) Outline six stages of an accounts receivable circularization
b) ISA 500 'Audit Evidence-Revised' provides the methods which the auditor could use
while collecting audit evidence. Using...
(Solved)
a) Outline six stages of an accounts receivable circularization
b) ISA 500 'Audit Evidence-Revised' provides the methods which the auditor could use
while collecting audit evidence. Using relevant examples, examine seven methods of
collecting audit evidence
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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The appropriateness of audit evidence is concerned with relevance and reliability
Required;-
Explain any three considerations that an auditor uses to assess the reliability of any piece...
(Solved)
The appropriateness of audit evidence is concerned with relevance and reliability
Required;-
Explain any three considerations that an auditor uses to assess the reliability of any piece of audit
evidence
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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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)
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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 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)
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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)