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