Which are the problems in developing and implementing audit plan?

      

Which are the problems in developing and implementing audit plan?

  

Answers


Wilfred
•• A company may have many clients with similar year ends. This will make allocation of time and audit staff difficult.
•• Abrupt changes in the client’s business will call for more audit time outside the planned time. This especially happens when the client converts from manual accounting system to a computerized system such changes weaken the internal control system in the short term and call for more audit time than was previously planned for.
•• Lack of co-operation from client e.g. providing information and explanations in good time is normally difficult for the client. This will be the major challenge for the auditor especially with a client who does not have proper accounting and internal control system.
•• Staff turnover in an audit firm. This inevitably interferes with the audit plan because it gives rise to unplanned staff shortages.
Wilfykil answered the question on April 11, 2019 at 10:07


Next: What is an audit planning memorandum?
Previous: With an aid of a diagram describe equilibrium in the classical labor market.

View More CPA Auditing and Assurance Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions