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- File reorganization – enables indexing, sorting, merging and linking with other files;
- Data selection – enables data filtration
- File access- enables the reading of different record formats and file structures;
- Arithmetic functions – enables the performance of arithmetic functions;
- Selecting samples or items for testing e.g. selecting debtors accounts that have been outstanding for more than the credit period;
- Printing reports or letters in a format specified by the auditor.
- Detection of violation of systems limits e.g. a sales ledger can be checked to ensure no customer has a balance above the authorized credit limit;
- Testing reasonableness checks e.g. ensuring the value of purchases is not greater than the value of stocks received
Wilfykil answered the question on February 22, 2019 at 08:22
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Auditors may be liable to shareholders and other parties who may have relied on the financial statements upon which the auditors have expressed an opinion. This is because the auditors are generally taken as owing a ―duty of care those parties and they
could be liable in the tort of negligence if they failed that duty.
Required:
(a) With reference to the external audit assignment, explain the meaning if the term ―duty of care
(b) Briefly explain the auditors‘ general responsibility. With regard to the prevention and detection of fraud and errors.
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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State the specific representations you, as an auditor, would wish to obtains from the management in respect of :
(i) Assets.
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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You have completed your audit of Tinga Tinga Ltd. You have issued a management letter to the Chief Accountant which identifies weaknesses in the controls over sales. Cash is received over the counter, from salesmen and also through the post. Tinga Tinga Ltd‘s Chief Accountant has asked you for recommendations as to the type of controls you would wish to see in operation in a sales system.
Required:
Outline the controls you would expect to find in Tinga Tinga Ltd‘s sales system with regard to:
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c) Cash sales within Tinga Tinga Ltd‘s premises
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)