i) In an organization, an internal control system enhances the efficient and orderly running of activities and operations to satisfy the needs of stakeholders.
ii) It ensures adherence to management policies. These policies provide a good framework within which the internal control system operates.
iii) Helps in the safeguarding of company‘s assets. Using physical controls such as lock and key and documentation e.g. fixed asset register, the company‘s assets can be safeguarded from unauthorized individuals.
iv) An internal control system assists in the prevention and detection of fraud and error.
v) It enhances accuracy and completeness of accounting records
vi) Ensures timely preparation of reliable financial information.
Wilfykil answered the question on February 22, 2019 at 10:08
- Identify and briefly explain the three key elements of a good internal control system.(Solved)
Identify and briefly explain the three key elements of a good internal control system.
Date posted: February 22, 2019. Answers (1)
- In the context of the Companies Act (Cap. 486), state the rights of an auditor(Solved)
In the context of the Companies Act (Cap. 486), state the rights of an auditor
Date posted: February 22, 2019. Answers (1)
- Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client(Solved)
Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client
Date posted: February 22, 2019. Answers (1)
- Identify any four circumstances under which an interim audit would be ideal.(Solved)
Identify any four circumstances under which an interim audit would be ideal.
Date posted: February 22, 2019. Answers (1)
- Explain how you would use a computer audit programme to verify the year-end debtors balances(Solved)
Explain how you would use a computer audit programme to verify the year-end debtors balances
Date posted: February 22, 2019. Answers (1)
- Explain the meaning of the following terms in relation to audit reports.
(i) Limitation in the scope of the audit.
(ii) Emphasis of matter(Solved)
Explain the meaning of the following terms in relation to audit reports.
(i) Limitation in the scope of the audit.
(ii) Emphasis of matter
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain four situations under which an auditor would consider qualification of his audit report(Solved)
Identify and briefly explain four situations under which an auditor would consider qualification of his audit report
Date posted: February 22, 2019. Answers (1)
- Identify four common problems that may hinder the proper implementation of an audit plan(Solved)
Identify four common problems that may hinder the proper implementation of an audit plan
Date posted: February 22, 2019. Answers (1)
- You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?(Solved)
You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?
Date posted: February 22, 2019. Answers (1)
- Briefly explain the ways in which the directors of a company discharge their duties with regard to the prevention and detection of errors and irregularities(Solved)
Briefly explain the ways in which the directors of a company discharge their duties with regard to the prevention and detection of errors and irregularities
Date posted: February 22, 2019. Answers (1)
- What are ?errors and irregularities in the contest of an external audit of a limited company?(Solved)
What are ―errors and irregularities in the contest of an external audit of a limited company?
Date posted: February 22, 2019. Answers (1)
- Outline the audit work you would undertake to obtain reasonable assurance that the following items appearing in the balance sheet of Ujuzi Ltd. are not...(Solved)
Outline the audit work you would undertake to obtain reasonable assurance that the following items appearing in the balance sheet of Ujuzi Ltd. are not materially misstated:
(i) Trade creditors
(ii) Specific provision for bad and doubtful debts.
Date posted: February 22, 2019. Answers (1)
- Explain the reliability of bank statements as audit evidence.(Solved)
Explain the reliability of bank statements as audit evidence.
Date posted: February 22, 2019. Answers (1)
- In the context of audit sampling, distinguish between the following terms:
(i) Sampling risk and non-sampling risk
(ii) Tolerable error and expected error
(iii) Audit risk...(Solved)
In the context of audit sampling, distinguish between the following terms:
(i) Sampling risk and non-sampling risk
(ii) Tolerable error and expected error
(iii) Audit risk and detection risk
Date posted: February 22, 2019. Answers (1)
- Identify and explain four factors that would influence the size of a sample selected by an external auditor to enable him carry out a compliance...(Solved)
Identify and explain four factors that would influence the size of a sample selected by an external auditor to enable him carry out a compliance test.
Date posted: February 22, 2019. Answers (1)
- List the main control features one would expect to find in the following activities related to the buying function in an organization:
(i) Buying of goods...(Solved)
List the main control features one would expect to find in the following activities related to the buying function in an organization:
(i) Buying of goods
(ii) Receipt of goods
(iii) Payment of outstanding balances
Date posted: February 22, 2019. Answers (1)
- Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements(Solved)
Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements
Date posted: February 22, 2019. Answers (1)
- Briefly explain, giving an example in each case, five functions of an audit software interrogation programme(Solved)
Briefly explain, giving an example in each case, five functions of an audit software interrogation programme
Date posted: February 22, 2019. Answers (1)
- Identify five sections in which information technology can be used to enhance the administration procedures and controls over an audit(Solved)
Identify five sections in which information technology can be used to enhance the administration procedures and controls over an audit
Date posted: February 22, 2019. Answers (1)
- Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records(Solved)
Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records
Date posted: February 22, 2019. Answers (1)