• Obtain the hank reconciliation statement and trace the entries in the cash book and those
in the bank statement into the reconciliation statement
• Obtain the bank statement directly from the bank and check the banking and withdrawals
from the statement.
• Check the arithmetic accuracy of each balance and all the outstanding items at the year
end to determine whether they have cleared.
• Verify the bank balance with the bank statements and the bank confirmation received
from the bankers.
• Scrutiny of the, cash book for the exceptional entries and the transfers that have material
effects on the balances in the bank
• Identify any account of the bank secured against the company's asset for overdraft.
• Consider whether there is illegal right for the set off of overdrafts against the positive
bank balances.
• Note the large deposits and withdrawal close to the end of the financial period to
ascertain authenticity.
• For the clients who operate foreign accounts, the balances should be translated at the
year-end rates.
• Check the disclosure of the balances in balance sheet at the year end.
Kavungya answered the question on May 14, 2019 at 13:57
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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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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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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)
-
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)
-
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)
-
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)
-
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)
-
Describe eight benefits of audit documentation.
(Solved)
Describe eight benefits of audit documentation.
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)
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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)
-
(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)