Get premium membership and access questions with answers, video lessons as well as revision papers.
- The internal auditor can pinpoint to the external auditor the weak points in the systems of internal controls, thus enabling him to focus his attention only on critical areas rather than on the whole system hence save on time.
- The internal auditor can prepare internal audit working papers, review the accounting system, programs etc. on behalf of the external auditor hence when the latter comes, he need not write notes afresh.
- The internal; auditor can undertake the physical verification and inspection of fixed assets on behalf of the external auditor who will only come to crosscheck existing assets against recorded values.
- The internal auditor may be used to perform the following on behalf of the external auditor;
1. Stock taking exercise
2. Cash counts
3. Branch visits
4. Follow-up confirmation of debtors, creditors, bank balances e.t.c.
Wilfykil answered the question on February 22, 2019 at 12:21
- Identify and explain the functions of the internal audit department in an organization.(Solved)
Identify and explain the functions of the internal audit department in an organization.
Date posted: February 22, 2019. Answers (1)
- List and briefly explain the main functions of an audit committee(Solved)
List and briefly explain the main functions of an audit committee
Date posted: February 22, 2019. Answers (1)
- Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission(Solved)
Explain five circumstances under which an auditor can disclose information to an appropriate authority without client‘s permission
Date posted: February 22, 2019. Answers (1)
- Outline the ways in which an auditor may be held criminally liable in the course of his audit duties(Solved)
Outline the ways in which an auditor may be held criminally liable in the course of his audit duties
Date posted: February 22, 2019. Answers (1)
- Explain the challenges that auditors face in the process of being independent(Solved)
Explain the challenges that auditors face in the process of being independent
Date posted: February 22, 2019. Answers (1)
- Suggest how the independence of an auditor may be strengthened(Solved)
Suggest how the independence of an auditor may be strengthened
Date posted: February 22, 2019. Answers (1)
- Briefly explain the meaning of the following terms in relation to audit reports:
(i) Except for opinion.
(ii) Disclaimer of opinion(Solved)
Briefly explain the meaning of the following terms in relation to audit reports:
(i) Except for opinion.
(ii) Disclaimer of opinion
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain any three procedures for obtaining audit evidence.(Solved)
Identify and briefly explain any three procedures for obtaining audit evidence.
Date posted: February 22, 2019. Answers (1)
- In the context of the Companies Act (Cap. 486), outline the procedure for the removal of an auditor(Solved)
In the context of the Companies Act (Cap. 486), outline the procedure for the removal of an auditor
Date posted: February 22, 2019. Answers (1)
- Identify the program controls which should be inbuilt in a computerized accounting system(Solved)
Identify the program controls which should be inbuilt in a computerized accounting system
Date posted: February 22, 2019. Answers (1)
- State and control objectives generally associated with the processing of data in a computerized accounting environment.‘(Solved)
State and control objectives generally associated with the processing of data in a computerized accounting environment.‘
Date posted: February 22, 2019. Answers (1)
- State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds(Solved)
State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds
Date posted: February 22, 2019. Answers (1)
- (i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review(Solved)
(i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review
Date posted: February 22, 2019. Answers (1)
- 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)