a) Manual technique that the auditor could use in the audit of a computer based accounting
system
- Review of exception reports. The auditor attempts to confirm these with other data e.g.
comparison of an outstanding dispatch note listing with the actual dispatch notes.
- Totaling. Relevant totals for example for debtors and creditors can be manually
verified.
- Re-performance. The auditor may re-perform a sample of computer generated
calculations e.g. for depreciation and interest expense.
- Reconciliations. These will include reconciliations for computer listings with creditor's
statements, bank statements, actual stock and personnel records.
- Comparison with other evidence such as results of debtoes circularization, attendance
at stock take and physical inspection of fixed asset.
b) Ways auditor's overcome problems of audit trail.
i) Auditors should have special print Outs for auditors, remember the need to be
consulted at the design stage.
ii) Inclusive audit facility: This means putting in the programs special audit instructions
that enable the computer to carry out some audit tests and produce print outs specially
for the auditor.
iii) Clerical recreation: Given unlimited time and man power, maintain the possibility to
recreate manually the audit trail. This would obviously be a very tedious exercise.
iv) Total testing and comparison: It is possible to- compare results with other data,.
budgets, previous periods and industry averages.
v) Alternative tests: We can perform stock takes, debtors' circularization and examination
of the condition of fixed assets.
vi) We can use test packs to verify program performance.
Kavungya answered the question on May 15, 2019 at 08:32
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Briefly explain the following types of audit software
i) Generalised audit software.
ii) Purpose written programs.
iii) Utility programs.
(Solved)
Briefly explain the following types of audit software
i) Generalised audit software.
ii) Purpose written programs.
iii) Utility programs.
Date posted:
May 15, 2019
.
Answers (1)
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Summarise ten benefits that could accrue to the auditor from automating audit procedures
(Solved)
Summarise ten benefits that could accrue to the auditor from automating audit procedures
Date posted:
May 15, 2019
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Answers (1)
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Application controls in confirmation technology are designed to ensure the integrity of the
accounting records. They relate to procedures used to initiate, record, process and report
transactions...
(Solved)
Application controls in confirmation technology are designed to ensure the integrity of the
accounting records. They relate to procedures used to initiate, record, process and report
transactions or other financial data.
Date posted:
May 15, 2019
.
Answers (1)
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a) Define the term "live data" as used when auditing through the computer.
b) Describe three disadvantages of using live data testing
(Solved)
a) Define the term "live data" as used when auditing through the computer.
b) Describe three disadvantages of using live data testing
Date posted:
May 15, 2019
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Answers (1)
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a) Discuss. four matters that an auditor should take into consideration in determining
whether or not to use Computer Aided Audit Techniques (CAATs).
b) Describe three practical...
(Solved)
a) Discuss. four matters that an auditor should take into consideration in determining
whether or not to use Computer Aided Audit Techniques (CAATs).
b) Describe three practical ways in which auditors might use laptops in the audit work. .
c) Explain three controls that auditors should implement when using laptops during audits.
Date posted:
May 15, 2019
.
Answers (1)
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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
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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
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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)
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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)
-
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
.
Answers (1)