Get premium membership and access questions with answers, video lessons as well as revision papers.

(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


Kavungya
(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:
fig11452019329.pngl

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


Next: Taja na ueleze dhima tano ambazo sajili za lugha hutekeleza
Previous: i) Outline two purposes of conducting interim audits. ii) Evaluate the drawbacks of conducting an interim audit in a business.

View More ATD Auditing Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions