(a) Factors to consider when using computer aided audit techniques
• Computer knowledge expertise is and experience of the auditor
• Availability of suitable compute assisted audit techniques. (CAATS) and IT facilities.
• Efficiency and effectiveness of using computer assisted audit technique (CAATs) over
manual techniques.
• The cost involved.
• The. volume of transactions.
• Compatibility with the clients system.
• Time constraints.
• Integrity of the client's IT system and environment.
(b) An auditor might use a laptop in the following practical ways:
• Flowcharting the clients systems - The use of such flowcharts ensure that they are legible
and can be easily updated.
• Preparation of audit programmes - These can be prepared using a word processor-which
will allow easy updating.
• Analytical procedures - A standard template can be set up on, a spreadsheet package, the
auditor the inputs key details.
• Preparing audit reports.
• Storage of data
• Preparation of audit working. papers.
• Preparing correspondences.with clients
• Statistical packages can assist in sample selection.
(c) Controls that auditors should implement when using laptops
• Back up of files - Backup copies of all audit files kept on the computer should be made
regularly and stored in a separate location.
• Security of files - Adequate procedures should be in force to ensure that only authorised
audit staff can gain access:
• Use of anti-viruses is also very important.
• Use of passwords
• Authorisation of access.
• Testing of programs - Before any program is used on audits, it should be tested to ensure
that as far as possible it is free 'from errors.
Kavungya answered the question on May 15, 2019 at 08:06
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a) Distinguish between "vouching" and "verification".
b) Outline the audit procedures you would carry out to verify the following items
appearing in the financial statements of a...
(Solved)
a) Distinguish between "vouching" and "verification".
b) Outline the audit procedures you would carry out to verify the following items
appearing in the financial statements of a client:
i) Cash in Hand,
ii) Loan to an employee.
iii) Fire insurance premium on factory building,
iv) Sales commission paid to an agent.
Date posted:
May 15, 2019
.
Answers (1)
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a) During the audit of cash in bank, an auditor should seek to obtain standard bank
confirmations from each-hank with which the client conducted business during...
(Solved)
a) During the audit of cash in bank, an auditor should seek to obtain standard bank
confirmations from each-hank with which the client conducted business during the period
under audit.
Required;
i) Explain the importance of an auditor obtaining confirmations from the client's bank.
ii) Outline the steps followed by an auditor when obtaining confirmations from the
client's bank.
b) Describe the audit procedures an auditor would carry out when verifying a client's bank
reconciliation.
Date posted:
May 14, 2019
.
Answers (1)
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"An auditor i:., required to use assertions for classes of transactions, account balances and
presentation and disclosure in sufficient detail in order to form a basis...
(Solved)
"An auditor i:., required to use assertions for classes of transactions, account balances and
presentation and disclosure in sufficient detail in order to form a basis for the assessment of risks
of material .misstatement and the design:and performance of further audit-procedures"'.
Required:
Identify the assertions used by auditors in the following categories:
i. Assertions about account balances at the period end
ii. Assertions about presentation and disclosure.
Date posted:
May 14, 2019
.
Answers (1)
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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)
-
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)
-
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)
-
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)
-
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)
-
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)