a) The details that should b contained in each working paper prepared by an auditor include:
- The audit objective that the auditor is trying to test by the information contained in the working paper;
- Details of the source of information documented in the working paper;
- Details of the person who prepared the working paper;
- Details of review of the working paper
- The date of preparation
b) Each client schedule used as a working paper should indicate:
- The client personnel who prepared the working paper;
- The date of preparation
c) An audit programme should include the following:
- The accounting area or balance to which the audit programme relates to;
- The audit objective that the auditor is testing;
- The audit procedures to be carried out;
- The conclusion on the audit objective basing on the evidence obtained;
- The details of the person who prepared the programme, the reviewer and date of review.
d) A permanent audit files contains information that is relevant for more than one financial year i.e information that is useful to the auditor for more than one financial year and is not specific to a single financial period. For example the letter of
engagement is contained in a permanent audit file. The engagement letter contains the terms of the contract between the auditor and the client. This information is required by the auditor in every financial period.
On the other hand the current audit file contains information that is relevant for the current financial period under audit. For example confirmations obtained from debtors are only relevant for the specific financial period being audited. Audit working papers provide evidence on the audit objective that the auditor was testing, information obtained in relation to that audit objective and the conclusion drawn by the auditor as supported by the evidence documented in the working papers.
Wilfykil answered the question on February 21, 2019 at 06:52
- Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with...(Solved)
Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;
- The effectiveness of the computer controls over sales and debtors
Required:
Set out the points, which you would raise, in your preliminary evaluation of controls over sales and debtors
Date posted: February 21, 2019. Answers (1)
- It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important...(Solved)
It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements.
Required:
a) Under statutory provision, what are the main contents of the auditors‘ report?
b) Explain how the international standards on auditing attempt to ensure that the report of the auditors is clearly understood.
c) Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
Date posted: February 21, 2019. Answers (1)
- The cashier of a firm who also acts a bookkeeper has been suspected of dishonesty. The books have not been audited for the last nine...(Solved)
The cashier of a firm who also acts a bookkeeper has been suspected of dishonesty. The books have not been audited for the last nine months. You have been asked to investigate the records to establish whether the cashier has committed a fraud
Required:
Outline how you would proceed with the investigation
Date posted: February 21, 2019. Answers (1)
- You are an audit senior in a firm of practicing accountants and your manager has gone out for an urgent meeting with a partner. Mr....(Solved)
You are an audit senior in a firm of practicing accountants and your manager has gone out for an urgent meeting with a partner. Mr. Charo, a manager with Charo and Company, a wholesale business has come to your office with a request that your firm becomes their auditors
Required:
a) Describe to Mr. Charo the legal, ethical and practical factors your firm would consider before accepting the appointment.
b) Explain to Mr. Charo the qualification and disqualification of an accounting firm under the provisions of the Companies Act to become auditors.
Date posted: February 21, 2019. Answers (1)
- Explain the following terms:
(a) Materiality;
(b) The duty of confidentiality;
(c) Professional indemnity insurance;
(d) Peer review;
(e) Quality Control(Solved)
Explain the following terms:
(a) Materiality;
(b) The duty of confidentiality;
(c) Professional indemnity insurance;
(d) Peer review;
(e) Quality Control
Date posted: February 21, 2019. Answers (1)
- Discuss the proposition that the =expectations gap‘ has arisen because of the public‘s ignorance and should therefore be resolved by the public themselves(Solved)
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: February 21, 2019. Answers (1)
- Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.(Solved)
Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.
Date posted: February 21, 2019. Answers (1)
- Does the auditor require a codified definition of ?reasonable care and skill or should this be left to professional judgment? Explain(Solved)
Does the auditor require a codified definition of ―reasonable care and skill or should this be left to professional judgment? Explain
Date posted: February 21, 2019. Answers (1)
- Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer.(Solved)
Do you believe that the auditors should be responsible to users other than the shareholders? Give reasons to support your answer.
Date posted: February 21, 2019. Answers (1)
- Explain how you would verify the following:
a) Investment income.
b) Bank balances.
c) Contingent liabilities.
d) Petty cash balances.(Solved)
Explain how you would verify the following:
a) Investment income.
b) Bank balances.
c) Contingent liabilities.
d) Petty cash balances.
Date posted: February 21, 2019. Answers (1)
- 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(Solved)
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: February 21, 2019. Answers (1)
- How does audit planning assist in the conduct of an audit?(Solved)
How does audit planning assist in the conduct of an audit?
Date posted: February 21, 2019. Answers (1)
- Explain the auditor‘s planning process when planning for an audit of a new client.(Solved)
Explain the auditor‘s planning process when planning for an audit of a new client.
Date posted: February 21, 2019. Answers (1)