i) Inspection
This consists of examining records, documents or tangible assets. The reliability of the evidence obtained from inspection of records and documents depends on the nature, source and effectiveness of the internal control system. Inspection of tangible assets provides evidence with respect to their existence but not as to their value and ownership.
ii) Observation
This involves looking at procedures being performed by others. E.g. observing the counting of stock by the client‘s personnel.
iii) Inquiry
Inquiry consists of seeking information of knowledgeable persons inside or outside the entity. This ranges from formal written inquiries addressed to 3rd parties to oral inquiries addressed to persons within the entity. The information may be new to the auditor or may corroborate evidence from other sources.
Wilfykil answered the question on February 21, 2019 at 07:05
- The matter listed below are always included in the internal control of a firm. You are required to explain the purpose of each of the...(Solved)
The matter listed below are always included in the internal control of a firm. You are required to explain the purpose of each of the items listed as (a), (b) and (c) below. Indicate the compliance tests you would carry out in order to ensure that the
intended controls were operating properly.
a) A requirement that mail is opened by two responsible employees who must promptly make listings of all receipts.
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c) A requirement that a bank reconciliation statement is prepared on monthly basis.
Date posted: February 21, 2019. Answers (1)
- Working papers provide the audit evidence. They can be categorized into:
i. Auditors‘ prepared working papers.
ii. Client‘s schedules used as working papers.
iii. Audit programmes.
Working papers are...(Solved)
Working papers provide the audit evidence. They can be categorized into:
i. Auditors‘ prepared working papers.
ii. Client‘s schedules used as working papers.
iii. Audit programmes.
Working papers are then organized into files usually referred to as either current files of permanent files.
Required:
a) What details should each working paper which is prepared by an auditor indicate?
b) What details should each client schedule used as a working paper indicate?
c) What details should an audit programme indicate?
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Date posted: February 21, 2019. Answers (1)
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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 ;
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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)
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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.
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Date posted: February 21, 2019. Answers (1)
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Required:
Outline how you would proceed with the investigation
Date posted: February 21, 2019. Answers (1)
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Required:
a) Describe to Mr. Charo the legal, ethical and practical factors your firm would consider before accepting the appointment.
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Date posted: February 21, 2019. Answers (1)
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(a) Materiality;
(b) The duty of confidentiality;
(c) Professional indemnity insurance;
(d) Peer review;
(e) Quality Control(Solved)
Explain the following terms:
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(b) The duty of confidentiality;
(c) Professional indemnity insurance;
(d) Peer review;
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Date posted: February 21, 2019. Answers (1)
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Date posted: February 21, 2019. Answers (1)
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Date posted: February 21, 2019. Answers (1)
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b) Bank balances.
c) Contingent liabilities.
d) Petty cash balances.(Solved)
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Date posted: February 21, 2019. Answers (1)
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iii. Quality controls(Solved)
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Date posted: February 21, 2019. Answers (1)
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Date posted: February 21, 2019. Answers (1)