i) Peer Review
This is a review of an audit firm‘s systems, procedures, and audit standards generally, conducted by another firm of comparable site and reputation. It‘s a review of a firm‘s complete set up by another firm and should be considered occasionally.
ii)
- Quality Control: peer review ensures a certain standard is achieved by an audit firm as a minimum, at least.
- Independence: The reviewing firm wants to confirm that the audit farm was working independent of its clients.
- Staff performance: To review the performance of audit staff and to assist them in improving their future performance.
- Weaknesses: To identify areas of weaknesses in the firm‘s procedures or applications thereof and to suggest solutions.
- Audit Opinion: To determine whether the scope and result of the audit work (audit evidence) is adequate to support the opinion as given in a particular audit.
- Industrial comparison: Review of a number of specially selected audits by the peer reviewers to check consistency of audit approach and application of a particular statement of standard accounting practice.
Wilfykil answered the question on February 22, 2019 at 11:34
- Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.(Solved)
Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.(Solved)
Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small...(Solved)
Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small vats. The steel components are sourced from outside suppliers. The year end stock mainly consists of these steel components and finished items. As at 31 October 2004, the total stock was valued at Sh. 6,048,000 out of total assets of Sh. 19,200,000. This stock figure was obtained by a physical count as at 31 October 2004, and valuation by reference to purchase invoices and manufacturing cost estimates.
Required:
With reference to each of the matters listed below, state the work you would do to conclude whether the amount attributed to stock is fairly stated.
(a) Quantities
(b) Identification of stock items
(c) Condition of stock items
(d) Cut-off procedures
(e) Valuation of stock
Date posted: February 22, 2019. Answers (1)
- List any four advantages of standardized audit working papers(Solved)
List any four advantages of standardized audit working papers
Date posted: February 22, 2019. Answers (1)
- Identify the type of information audit trainees should include in the audit working papers.(Solved)
Identify the type of information audit trainees should include in the audit working papers.
Date posted: February 22, 2019. Answers (1)
- Provide audit trainees with guidelines on how they should prepare audit working papers.(Solved)
Provide audit trainees with guidelines on how they should prepare audit working papers.
Date posted: February 22, 2019. Answers (1)
- Explain the importance of audit working papers.(Solved)
Explain the importance of audit working papers.
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company(Solved)
Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain any four inherent limitations of an internal control system(Solved)
Identify and briefly explain any four inherent limitations of an internal control system
Date posted: February 22, 2019. Answers (1)
- What purpose does an internal control system serve in an organization?(Solved)
What purpose does an internal control system serve in an organization?
Date posted: February 22, 2019. Answers (1)
- 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)