- The primary responsibility for prevention and detection of errors and irregularities rests with management
- This responsibility arises out of a contractual duty of care by directors and managers and also because directors and other managers act as stewards with regard to property entrusted to them by the shareholders.
- This duty may be discharged by them by instituting and maintaining a strong system of internal controls.
- The auditor is not required to assist the directors in the task the draft guideline does suggest that an auditor should remind the directors of their responsibility through an engagement letter or other means, and the need to have a system of internal controls as a deterrent to errors and irregularities.
- In regard to errors and irregularities, the auditor should have sufficient, relevant and reliable audit evidence to support his opinion or to conclude that no material errors and irregularities have occurred or if they have occurred, then they have either been corrected or properly disclosed in the financial statements
Wilfykil answered the question on February 22, 2019 at 13:12
- List the procedures you would follow to verify the following items:
(i) Petty cash balance.
(ii) Revaluation reserve.
(iii) Copyrights(Solved)
List the procedures you would follow to verify the following items:
(i) Petty cash balance.
(ii) Revaluation reserve.
(iii) Copyrights
Date posted: February 22, 2019. Answers (1)
- Cash in hand and cash at bank are commonly referred to as liquid assets. Because of this liquidity, these assets represent the most vulnerable of...(Solved)
Cash in hand and cash at bank are commonly referred to as liquid assets. Because of this liquidity, these assets represent the most vulnerable of all the assets of an entity. You have recently been employed by Korir and Associates (Certified Public
– Accountants) as an audit assistant. During your first audit assignment at Viwanda Ltd you have been allocated the audit of cash in hand and cash at bank.
Required
(i) State and explain any the audit procedures you would undertake in order to determine whether or not there has been any misappropriation of cash.
(ii) Explain any five controls over cash you would expect to be instituted by a business entity in order to minimize cases of embezzlement of cash
Date posted: February 22, 2019. Answers (1)
- The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.(Solved)
The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.
Required:
(a) State four benefits that an auditor would obtain from working papers that satisfy the above requirement.
(b) List five items of information you would expect to be contained in a permanent audit file and explain why each of these items of information should be readily available.
(c) In the audit or purchases, list four examples of the type of information that would be contained in the detailed audit working papers.
(d) Give any two reasons why a director should examine the directors‘ minute book
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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Date posted: February 22, 2019. Answers (1)
- Identify and explain the functions of the internal audit department in an organization.(Solved)
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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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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)
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Date posted: February 22, 2019. Answers (1)
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Explain the challenges that auditors face in the process of being independent
Date posted: February 22, 2019. Answers (1)
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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)
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Date posted: February 22, 2019. Answers (1)
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State and control objectives generally associated with the processing of data in a computerized accounting environment.‘
Date posted: February 22, 2019. Answers (1)
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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)