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• The auditor might commence detailed testing before completing the planning work hence
resulting in omissions, unnecessary work and misunderstandings with a client.
• Inadequate documentation where the documentation required before commencement of
an audit are inadequate, the planning process will not be successful.
• Lack of a proper understanding of the client's business understanding the nature of the
business of a client is important.
Kavungya answered the question on May 14, 2019 at 12:47
- Summarize six advantages of the business risk approach in auditing.(Solved)
Summarize six advantages of the business risk approach in auditing.
Date posted: May 14, 2019. Answers (1)
- Explain the importance of audit planning.(Solved)
Explain the importance of audit planning.
Date posted: May 14, 2019. Answers (1)
- Describe eight benefits of audit documentation.(Solved)
Describe eight benefits of audit documentation.
Date posted: May 14, 2019. Answers (1)
- In the context of International Standards on Auditing (ISA) 300 (Planning and Audit of Financial
Statements);
a) Explain when audit planning takes place
b) List four items that...(Solved)
In the context of International Standards on Auditing (ISA) 300 (Planning and Audit of Financial
Statements);
a) Explain when audit planning takes place
b) List four items that should be included in audit planning memorandum
c) i) Suggest four practical problems that could be encountered in implementing audit
plan.
ii) Explain four ways in which you would mitigate the effects of the problems
identified in (c) (i) above
Date posted: May 14, 2019. Answers (1)
- a) Highlight the three components of audit risk.
b) Explain six objectives of planning the audit work.
c) Describe four sources of information that could assist in...(Solved)
a) Highlight the three components of audit risk.
b) Explain six objectives of planning the audit work.
c) Describe four sources of information that could assist in audit planning.
Date posted: May 14, 2019. Answers (1)
- a) Identify five additional matters that an external auditor should take into consideration
when preparing an audit plan for a new client.
b) An auditor shall establish...(Solved)
a) Identify five additional matters that an external auditor should take into consideration
when preparing an audit plan for a new client.
b) An auditor shall establish an overall audit strategy that guides the development of the
audit plan. With reference to the above statement, discuss five matters that the auditor
should consider when establishing the overall audit strategy.
Date posted: May 14, 2019. Answers (1)
- Explain why an auditor should prepare a letter of engagement(Solved)
Explain why an auditor should prepare a letter of engagement
Date posted: May 14, 2019. Answers (1)
- Differentiate the role of an accountant from that of an auditor.(Solved)
Differentiate the role of an accountant from that of an auditor.
Date posted: May 14, 2019. Answers (1)
- i) Outline two purposes of conducting interim audits.
ii) Evaluate the drawbacks of conducting an interim audit in a business.(Solved)
i) Outline two purposes of conducting interim audits.
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)
(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.
Date posted: May 14, 2019. Answers (1)
- (a) It is essential that all members of an audit team fully understand the client's industry,
business and organisation.
With reference to the above statement, list the...(Solved)
(a) It is essential that all members of an audit team fully understand the client's industry,
business and organisation.
With reference to the above statement, list the different ways that the knowledge implied
above could be obtained.
(b) Explain the meaning of the following terms with reference to auditing:
(i) Due diligence.
(ii) Forensic auditing.
Date posted: May 14, 2019. Answers (1)
- Explain the importance of the following in the context of an audit:
i. Audit programme
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)
- Discuss the case for and against outsourcing the internal and it function of an entity.(Solved)
Discuss the case for and against outsourcing the internal and it function of an entity.
Date posted: May 14, 2019. Answers (1)
- (a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's
duties and rights.
Required;
List four duties of the auditor...(Solved)
(a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's
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)
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 client on
their first meeting.
Date posted: May 14, 2019. Answers (1)
- Identify any four areas in which the external auditor must seek co-operation from an internal
auditor in an audit assignment.(Solved)
Identify any four areas in which the external auditor must seek co-operation from an internal
auditor in an audit assignment.
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)