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1. Accounting policies
Consider if they;
- Are in accordance with generally accepted accounting principles and comply with fundamental accounting concepts as going concern, accruals, consistency and prudence.
- Are acceptable to particular circumstances
- Are commonly adopted in a particular industry
- Are consistently applied over the years
- Are consistently applied throughout the enterprise
- Comply with all relevant accounting standards
2. Circumstances of enterprise
- Consider if the accounts are consistent with the auditor‘s knowledge of underlying circumstances of the business and information.
- Review information in the accounts to determine if there are any abnormalities or inconsistencies
3. Presentation and disclosure
- Consider in any conclusion that a reader might draw from his reading of the accounts would be justified and is consistent with the circumstances of the enterprise
- Consider if the substance of any transactions or activities is disclosed and not merely their form
- Consider if the presentation might have been unduly influenced by management‘s desire to present facts in a favorable light
- Consider if the review has indicated that there are few factors which might alter the policies used or the presentation of the accounts, and special attention needs to be paid to going concern difficulties
Wilfykil answered the question on February 23, 2019 at 06:27
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Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005, Ujenzi Ltd‘s payroll system is fully computerized
Required:
(a) Explain four ways in, which the use of a computerized payroll system by Ujenzi Ltd, would affect your work as the auditor.
(b) Explain three controls which should be instituted by Ujenzi Ltd to ensure that only authorized persons are allowed access to information on personal files and to input updates for the calculation of wages.
(c) Outline how audit tests could be performed ―around the computer in relation to Ujenzi Ltd‘s payroll
(d) List any two fraudulent activities likely to be perpetrated in relation to Ujenzi Ltd‘s payroll
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)
- List the procedures you would follow to verify the following items:
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(ii) Revaluation reserve.
(iii) Copyrights(Solved)
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Date posted: February 22, 2019. Answers (1)
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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.
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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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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)
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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:
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Date posted: February 22, 2019. Answers (1)
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Date posted: February 22, 2019. Answers (1)