i) Assertion used by the auditor about account balances at the period end.
Completeness: Ensure that the balances have been disclosed in the hooks or accounts
completely.
Accuracy: Obtain evidence that the accounts balances have been recorded accurately.
Rights and obligations. Ensures that the assets are the rights of the business and liabilities are
its obligations.
Existence; this is a representation by management that assets recorded and presented in the
financial statements actually do exist.
ii) Assertions about presentation and disclosures.
Cut off: Ensures that all the disclosures in the financial statements are related to the period in
which they are incurred and that no part of the disclosure have been done twice.
Completeness: Confirm that all assets and liabilities have been recorded and disclosed
completely.
Rights and obligations: Assets are the rights of the entity and liabilities arc the obligations of
the business.
Valuations: Ensure that assets and liabilities have been fairly valued.
Kavungya answered the question on May 14, 2019 at 14:01
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Summarise the audit work you would undertake to obtain reasonable assurance that the
following items appearing the Statement of financial position of a client are not...
(Solved)
Summarise the audit work you would undertake to obtain reasonable assurance that the
following items appearing the Statement of financial position of a client are not materially
misstated:
i. Specific allowance for doubtful debts.
ii. Trade payables.
Date posted:
May 14, 2019
.
Answers (1)
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Explain how an auditor would carry out the verification of cash at bank.
(Solved)
Explain how an auditor would carry out the verification of cash at bank.
Date posted:
May 14, 2019
.
Answers (1)
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For each of the following items in the financial statements, identify five forma of third party
evidence that the auditor would rely on.
i. Land
ii. Rent expenses
iii....
(Solved)
For each of the following items in the financial statements, identify hvo.forins of third party
evidence that the auditor would rely on.
i. Land
ii. Rent expenses
iii. Motor vehicles
Date posted:
May 14, 2019
.
Answers (1)
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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)
-
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
.
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)
-
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)
-
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)