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(a) Matters an auditor should take into consideration when preparing for new clients
• Communicate with the previous auditor, where there has been a change of auditors, in
compliance with relevant ethical requirements.
• Major issues such as including the application of accounting principles or of auditing and
reporting standards discussed by management should, be communicated to those charged
with governance.
• Audit procedures necessary to obtain sufficient appropriate audit evidence regarding
opening balances.
• Other procedures required by the firm's system of quality control for initial audit
engagements.
• Perform procedures regarding the acceptance of the client in other words procedures that
must-be-performed. by an auditor before accepting nomination.
(b) Matters an auditor should consider when establishing an overall audit strategy: .
• The financial reporting framework on which the financial information to be audited has
been prepared.
• Industry - specific reporting requirements, such as reports, mandated by industry
regulators.
• The expected audit coverage, including the number and location of components to be
included.
• The reporting currency to be used, including any need for currency translation.
• The nature or the business segments to be audited including the need for specialized
knowledge.
• The availability or the work of internal auditors and the extent of the auditor's potential
reliance on such work.
• The entity's timetable for reporting, such as interim and final stages.
• The discussion with management regarding the expected types and timing of reports to be
issued and communications in connection with the components.
Kavungya answered the question on May 14, 2019 at 12:39
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ii) Evaluate the drawbacks of conducting an interim audit in a business.(Solved)
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ii) Evaluate the drawbacks of conducting an interim audit in a business.
Date posted: May 14, 2019. Answers (1)
- (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...(Solved)
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(b) Explain three fundamental differences between the work of internal auditors and external
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Date posted: May 14, 2019. Answers (1)
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With reference to the above statement, list the...(Solved)
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business and organisation.
With reference to the above statement, list the different ways that the knowledge implied
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(i) Due diligence.
(ii) Forensic auditing.
Date posted: May 14, 2019. Answers (1)
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ii. Time budget.(Solved)
Explain the importance of the following in the context of an audit:
i. Audit programme
ii. Time budget.
Date posted: May 14, 2019. Answers (1)
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Date posted: May 14, 2019. Answers (1)
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duties and rights.
Required;
List four duties of the auditor...(Solved)
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duties and rights.
Required;
List four duties of the auditor of a limited liability company that can be inferred From
Section 162 and 7th Schedule of the Companies Act.
(b) Differentiate between a continuous audit and an interim audit.
Date posted: May 14, 2019. Answers (1)
- (a) Define the term "audit committee."
(b) Discuss the potential benefits that could accrue to an organisation that sets up and
maintains an audit committee.(Solved)
(a) Define the term "audit committee."
(b) Discuss the potential benefits that could accrue to an organisation that sets up and
maintains an audit committee.
Date posted: May 14, 2019. Answers (1)
- a) State the reasons why an auditor might not be appointed.
b) Identify the matters that a new auditor would discuss with the management of a...(Solved)
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b) Identify the matters that a new auditor would discuss with the management of a client on
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Date posted: May 14, 2019. Answers (1)
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Identify any four areas in which the external auditor must seek co-operation from an internal
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Date posted: May 14, 2019. Answers (1)
- Explain the guidelines that have been issued by the Institute of Accountants in your country,
to prevent the following matters from posing a threat to an...(Solved)
Explain the guidelines that have been issued by the Institute of Accountants in your country,
to prevent the following matters from posing a threat to an auditor's independence:
(i) Fees.
(ii) Personal and family relationships.
(iii) Loans_
(iv) Beneficial shareholdings.
Date posted: May 14, 2019. Answers (1)