(a) Highlight -five weaknesses of an audit conducted at the end of the financial period. (b) Explain three fundamental differences between the work of internal auditors...

(a) Highlight -five weaknesses of an audit conducted at the end of the financial period.
(b) Explain three fundamental differences between the work of internal auditors and external
auditors.

Answers

(a) Weaknesses of audit at year end
• Number of clients - if the audit firm has a substantial number of clients with similar year
ends, it may be difficult for the auditor to schedule his/her staff to cover all the clients
• Size of a company - it might not be possible to carry out an audit of a large
firm/company comprehensively.
• Increases auditor's liability - it might increase the liability of the auditor especially if
the sample tested is small.
• Delays the annual general meeting - in case of unforeseen circumstances, final audits
could take a significant amount of time and thus delaying the reports necessary to
convene an annual general meeting, especially where the internal controls are weak.
• Errors and frauds - the errors and frauds detected at the year-end could be enormous for
a firm/company to contain.

(b) Fundamental differences between internal and external auditors:

Kavungya answered the question on May 14, 2019 at 12:32

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