1. The audit fails to ensure that all the risks that matter now and will matter in the near future are getting the appropriate level of attention from internal audit.
2. The audit committee should challenge any audit activity that is not designed to address a risk that matters.
3. The audit fails to take a strong stance that internal audit reports to them and serves their needs first, not those of management.
4. The audit committee should challenge internal audit on how they work with the risk management activity. Where it exists, are they assessing its effectiveness, risk and management of risk appropriately?
5. The audit is bereft of objectivity and independence from undue management influence.
6. Finally, but in many ways most importantly, the audit committee should require that the CAE provide them with a formal assessment of the company’s management of risks and the effectiveness of related internal controls.
The publication make
Burchris answered the question on July 6, 2019 at 19:04
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Briefly discuss financial indicators that managers/ owners of a firm can use to predict business failure/bankruptcy.
(Solved)
Briefly discuss financial indicators that managers/ owners of a firm can use to predict business failure/bankruptcy.
Date posted:
April 28, 2019
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Answers (1)
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What tax set offs are available to an individual taxpayer which may reduce the gross tax liability?
(Solved)
What tax set offs are available to an individual taxpayer which may reduce the gross tax liability?
Date posted:
April 27, 2019
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Answers (1)
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The following transactions relate to Munene traders during the month of March 2014. March 1 Started business with Ksh. 200,000 in the bank March 2...
(Solved)
The following transactions relate to Munene traders during the month of March 2014.
March 1 Started business with Ksh. 200,000 in the bank
March 2 Purchased goods worth ksh. 50000 via cheque
March 3 Sold goods by cash ksh. 10,000
March 13 Bought equipment from Maasai traders of kshs. 80,000 on credit
March 15 Sold goods worth 15,000 to Kemere on credit
March 16 Kamere returned goods worth shs. 2000 due to them being faulty
March 21 Took goods worthy ksh. 3000 for personal use
March 25 Took ksh. 10000 from the cash in to the bank account
March 31 Paid salaries via cheque of ksh. 60,000
Required
Pass the necessary journal entries. (8mks)
b) Open relevant accounts to record the above transactions and balance them. (12mks)
Date posted:
April 17, 2019
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Answers (1)
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What is a questionnaire? State advantages and disadvantages of questionnaire
(Solved)
What is a questionnaire? State advantages and disadvantages of questionnaire.
Date posted:
April 11, 2019
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Answers (1)
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What are the control mechanisms put in place to enhance transparency in an organization?
(Solved)
What are the control mechanisms put in place to enhance transparency in an organization?
Date posted:
April 8, 2019
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Answers (1)
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What is the role of management accounting in the overall performance of the organization?
(Solved)
What is the role of management accounting in the overall performance of the organization?
Date posted:
April 8, 2019
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Answers (1)
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Identify four kinds of companies
(Solved)
Identify four kinds of companies.
Date posted:
March 13, 2019
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Answers (1)
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Explain advantages of a cost accounting system.
(Solved)
Explain advantages of a cost accounting system.
Date posted:
March 4, 2019
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Answers (1)
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Show the journal entries necessary to record the following items:
2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790.
2003...
(Solved)
Show the journal entries necessary to record the following items:
2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790.
2003 May 3 A debt of Sh.34 owing from N Smart was written off as a bad debt.
2003 May 8 Furniture bought by us for Sh.490 was returned to the supplier Wood Offices, as it was unsuitable. Full allowance will be given.
2003 May 12 we are owed Sh.150 by W Hayes. He is declared bankrupt and we received
Sh.39 in full settlement of the debt.
2003 May 14 we take Sh.45 goods out of the business stock without paying for them.
2003 May 28 Some time ago we paid an insurance bill thinking that it was all in respect
Of the business. We now discover that Sh.76 of the amount paid was in fact
Insurance of our private house.
2003 May 28 Bought Machinery Sh.980 on credit from Xerox Machines Ltd.
Date posted:
December 14, 2018
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Answers (1)
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On august 1 2005, airbus Ltd. (a company that records adjusting entries only once per year) issued bonds with the following characteristics:
Sh.50, 000 total face...
(Solved)
On august 1 2005, airbus Ltd. (a company that records adjusting entries only once per year) issued bonds with the following characteristics:
Sh.50, 000 total face value.
12% stated rate.
16% yield rate.
Interest dates are February 1, May 1, August 1, and November 1.
Bond date is October 31, 2004.
Maturity date is November 1, 2009.
Sh.1, 000 of bond issue costs were incurred.
Required:
1) Provide all entries required for the bond issue through February 1, 2006, for Airbus using the interest method.
2) On June 1, 2007, Airbus retired Sh.20, 000 of bonds at 98 through open market purchase. Provide the entries to update the bond issue and to retire the bonds using the interest method.
3)Provide the entries required on August 1, 2007, under the following methods of discount amortization:
i) Interest method
ii) Straight-line method
Date posted:
December 12, 2018
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Answers (1)
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You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit...
(Solved)
You are currently working as the audit assistant at AB partners certified public accountant. During the audit of XYZ company you have been allocated audit of motor vehicles for year ending September 2018. You are required to highlight the substantive procedures you would undertake in your audit of motor vehicle
Date posted:
October 20, 2018
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Answers (1)
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List four advantages that would accrue to members of an accounting professional body from "peer review"
(Solved)
List four advantages that would accrue to members of an accounting professional body from "peer review".
Date posted:
October 12, 2018
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Answers (1)
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Assuming that You have been invited by chamber of Commerce, so as to give a talk on sources of Finance...
(Solved)
Assuming that You have been invited by chamber of Commerce, so as to give a talk on sources of Finance, apart from the loans or overdrafts offered by financial institutions. You are requested to advice the participants on alternative forms of finance that are available to a local borrower.
Date posted:
September 10, 2018
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Answers (1)
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Explain the following terms: (a) Materiality; (b) The duty of confidentiality; (c) Professional indemnity insurance; (d) Peer review; ...
(Solved)
Explain the following terms:
(a) Materiality;
(b) The duty of confidentiality;
(c) Professional indemnity insurance;
(d) Peer review;
(e) Quality Control.
Date posted:
August 13, 2018
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Answers (1)
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(a) Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer. (b) Does the...
(Solved)
a) Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer.
b) Does the auditor require a codified definition of “reasonable care and skill” or should this be left to professional judgment? Explain.
c) Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.
d) Discuss the proposition that the „expectations gap? has arisen because of the public?s ignorance and should therefore be resolved by the public themselves.
Date posted:
August 13, 2018
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Answers (1)
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Outline the risks associated with cloud computing
(Solved)
Outline the risks associated with cloud computing.
Date posted:
August 10, 2018
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Answers (1)
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Explain how you would verify the following: a) Investment income.
b) Bank balances.
c)...
(Solved)
Explain how you would verify the following: a) Investment income.
b) Bank balances.
c) Contingent liabilities.
d) Petty cash balances.
Date posted:
August 8, 2018
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Answers (1)
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Audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensure an effective control of audit work. ...
(Solved)
Audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensure an effective control of audit work.
Required:
a) Explain the auditor's planning process when planning for an audit of a new client. b) How does audit planning assist in the conduct of an audit?
c) Explain the following controlling procedures in a well planned audit:
i. Direction and supervision of work. ii. Review and co-ordinating of work. iii. Quality controls
Date posted:
August 8, 2018
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Answers (1)
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You are the manager responsible for the audit of ABC Company, which has...
(Solved)
You are the manager responsible for the audit of ABC Company, which has a turnover of KShs 750 million. The company has been audited by your firm for a number of years and this is the second year you have been responsible as manager for the audit. However, owing to your responsibilities for other audits you are only intending to make periodic visits to the company during the course of the audit and you will not be involved in any of the detailed audit work.
Required
a) State the matters you would consider in planning the audit, prior to the commencement of the detailed audit work. b) Describe the way in which you would control the audit from the commencement of the work by the audit staff to the review stage by the partner immediately prior to him signing the audit report
Date posted:
August 4, 2018
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Answers (1)
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a) In the context of a computer based accounting system, explain the meaning of the following terms:
i. Application controls;
ii. ...
(Solved)
a) In the context of a computer based accounting system, explain the meaning of the following terms:
i. Application controls;
ii. General controls
b) Explain the importance of having proper systems documentation
c) A Company wishes to change from an old computerised system to a new computer based accounting system. Explain how and why both systems should run parallel prior to the change over to the new system.
Date posted:
August 4, 2018
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Answers (1)