Case for using liability disclaimer paragraph
• It enables the intended users to understand the situation correctly as it exists in respect of
report issued.
• It helps to bridge the expectation gap by providing the clear indication of the
responsibility of the auditor
Case against using liability disclaimer paragraph
• It can lead to low quality audit since the auditors are protected against. litigation by third
parties
• It can lead to misinterpretation of the matters reported by the auditors
• There is risk that auditors may not exercise due care and diligence because of protection
from the Auditors may not exercise due care and diligence in the course of reporting
since they are aware to be protected by disclaimer.
Kavungya answered the question on May 15, 2019 at 08:53
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Explain live basics elements of the auditor's report
(Solved)
Explain live basics elements of the auditor's report
Date posted:
May 15, 2019
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Answers (1)
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(a) Explain two types of qualifications made by the auditor when there is a disagreement.
(b) Briefly explain the matters that form part of the opening...
(Solved)
(a) Explain two types of qualifications made by the auditor when there is a disagreement.
(b) Briefly explain the matters that form part of the opening paragraph in an audit report.
Date posted:
May 15, 2019
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Answers (1)
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Analyze four types of auditor's opinions
(Solved)
Analyze four types of auditor's opinions
Date posted:
May 15, 2019
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Answers (1)
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Discuss three ways in which limitation of the scope of the auditors work could occur
(Solved)
Discuss three ways in which limitation of the scope of the auditors work could occur
Date posted:
May 15, 2019
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Answers (1)
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Describe seven basic elements of an auditor's report.
(Solved)
Describe seven basic elements of an auditor's report.
Date posted:
May 15, 2019
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Answers (1)
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a) Describe five statutory disclosures that an auditor is required to make in his audit report.
b) When there is a disagreement between the auditor and...
(Solved)
a) Describe five statutory disclosures that an auditor is required to make in his audit report.
b) When there is a disagreement between the auditor and the management, the auditor is
able to conclude objectively that he has received all information and explanations
necessary for the purpose of the audit. However, his conclusion differs-with the position
taken by management or with the view given by the financial statements.
With reference to the above statement, explain five circumstances that might give rise to
disagreements between the management and the auditor.
Date posted:
May 15, 2019
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Answers (1)
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In the context of computer based accounting systems:
a) Identify and explain the program controls which are developed to minimise errors in the
processing of records.
b) Highlight...
(Solved)
In the context of computer based accounting systems:
a) Identify and explain the program controls which are developed to minimise errors in the
processing of records.
b) Highlight two types of computer files which are used for the processing of data.
c) Summarise the ways in which an auditor could use a file interrogation software in the
course of his/her audit work.
Date posted:
May 15, 2019
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Answers (1)
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Analyze the distinguishing features of computer based systems which an auditor must
consider in an audit engagement.
i) Define the term "test data".
ii) Explain three ways of...
(Solved)
Analyze the distinguishing features of computer based systems which an auditor must
consider in an audit engagement.
i) Define the term "test data".
ii) Explain three ways of using test data in an audit.
Date posted:
May 15, 2019
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Answers (1)
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a) Explain the two main types of computer assisted audit techniques.
b) Argue the case for and against a company outsourcing its electronic data processing to...
(Solved)
a) Explain the two main types of computer assisted audit techniques.
b) Argue the case for and against a company outsourcing its electronic data processing to a
computer bureau.
Date posted:
May 15, 2019
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Answers (1)
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Outline six benefits that could be derived from using Computer Assisted Audit techniques
(CAATs)
(Solved)
Outline six benefits that could be derived from using Computer Assisted Audit techniques.
(CAATs)
Date posted:
May 15, 2019
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Answers (1)
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Identify six controls that could be instituted in a new computer based accounting system to
prevent unauthorized changes to data files.
(Solved)
Identify six controls that could be instituted in a new computer based accounting system to
prevent unauthorized changes to data files.
Date posted:
May 15, 2019
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Answers (1)
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Explain six ways in which audit software could be used in an audit.
(Solved)
Explain six ways in which audit software could be used in an audit.
Date posted:
May 15, 2019
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Answers (1)
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Jikaze Limited operates a computerised purchases system. Invoices and credit notes are posted to
the purchases ledger by the purchases department. The computer subsequently raises a...
(Solved)
Jikaze Limited operates a computerised purchases system. Invoices and credit notes are posted to
the purchases ledger by the purchases department. The computer subsequently raises a cheque
when the invoice is due for payment.
Required:
Describe five controls that should be in operation over the addition, amendment and deletion or
suppliers in the computer system.
Date posted:
May 15, 2019
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Answers (1)
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a) During an audit. the auditor uses a combination of compliance tests or control, analytical
procedures and detailed substantive procedures. When the information system is computer
based,...
(Solved)
a) During an audit. the auditor uses a combination of compliance tests or control, analytical
procedures and detailed substantive procedures. When the information system is computer
based, the detailed tests involve the use of manual techniques and computer audit
programs.
Required:
Explain three manual techniques that an auditor could use in the audit of a computer based
information system.
(b) An audit trial can be described as a series of cross-references that enable the auditor to
Follow a transaction from cradle to grave and vice versa and to check the operations
performed at each stage of processing.
The transformation from manual accounting systems to fully computer based information
systems has led to the loss of audit trail such that audit trials are often now:
• Available in machine readable form only or
• Retained only as long as is necessary for the system to verify the transaction.
Required:
Explain the different ways auditors overcome these problems of loss of audit trail.
Date posted:
May 15, 2019
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Answers (1)
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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
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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
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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
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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
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Answers (1)