a) List four reasons for preparing audit working papers b) Identify four types of information you would expect to -find in the following:- i. Permanent audit file ii....

      

a) List four reasons for preparing audit working papers
b) Identify four types of information you would expect to -find in the following:-
i. Permanent audit file
ii. Current audit file

  

Answers


Kavungya
(a) Reasons for Preparing audit working paper
• To obtain evidence of work done.
• To help train staff involved in audit.
• To help gather evidence in case of a catastrophe to launch an insurance claim.
• To assist KRA tax dues from the client.
• Working papers are used for future reference
• Form basis for audit opinion.
• To aid conduct of subsequent planning

(b)
(i)Types of information contained in a permanent audit file
• Memorandum and article of association/rules and regulations
• List of the companies responsible officers
• Statutory documents e.g. Company's act.
• List of the companies responsible officers
• Certificate of incorporation
• Tax certificate
• Company's registered office location
• Major agreements/contracts entered into.
• Management structures.
• Audit programmes.
• Engagement letter.
• Policies and procedure of the company
(ii) Types of information contained in a currant audit file
• Current financial statements
• Management representation letter.
• Audit work to be carried out.
• Updates on-policies and procedures of the company
• Updated engagement letter
• New legal agreements
• Working papers on all items in the financial statements.
Kavungya answered the question on May 14, 2019 at 13:28


Next: The appropriateness of audit evidence is concerned with relevance and reliability Required;- Explain any three considerations that an auditor uses to assess the reliability of any piece...
Previous: a) Outline six stages of an accounts receivable circularization b) ISA 500 'Audit Evidence-Revised' provides the methods which the auditor could use while collecting audit evidence. Using...

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


Exams With Marking Schemes

Related Questions