(a) Advantages of using standardized working papers
• .Improves the efficiency with which they are prepared.
• They act as guidelines or instructions to audit staff and facilitate delegation Of work
• Ensures that all relevant issues in the audit area are addressed.
Disadvantages of standardized working papers
• Audit work becomes mechanical.
• Client's staff may become familiar with the method.
• initiative. of the audit staff may be stifled because the need to' exercise judgement in
preparing working papers is eliminated.
• It may become obsolete
• It may not be appropriate for all clients.
(b) Factors that would influence the acceptance of third party evidence:-
• The credibility of the source of third party, evidence for example information received
from a bank confirming the client's bank balance is credible.
• The relationship between the third party and the client. Where the third party is
independent of the client then such evidence, can be-accepted.
• Where evidence is sent directly to the auditor as opposed to being sent to the client first,
such evidence is more acceptable.
• Where the evidence corroborates other evidence obtained by the auditor for example
where a confirmation from a debtor agrees with the-amount in the client's debtors listing.
Kavungya answered the question on May 14, 2019 at 13:24
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