1. Invoices for capital expenditure, services, office supplies expenses
• With appropriating supporting evidence,
• See approval by duly authorised officials and verify that authority limited is being
observed.
• Check entries in plant register.
2. Invoices for goods, raw materials
• With purchase requisitions and purchase orders signed by duly authorised officials,
• With goods received rates and inspection rates,
• Check entries in stock records.
• See that partial deliveries are properly accounted for to ensure there is no duplicate
payment
• With quotations, price units, to see that the price is in order,
• If an • invoice has not been paid due to some defect in the goods, weight or price
discrepancy, trace entry in records of goods returned etc.- and see credit note duly
received from supplier.
• Check calculations and additions.
• Check entries in the purchases day book and verify that they are correctly analysed,
• Check postings to the purchases ledgers.
Kavungya answered the question on May 14, 2019 at 13:50
- a) List four audit .procedures you would perform on credit notes issued to customers upon
return of goods
b) Explain why it is important for an auditor...(Solved)
a) List four audit .procedures you would perform on credit notes issued to customers upon
return of goods
b) Explain why it is important for an auditor to send a bank letter to his client's bank.
c) Summarize any six procedures that are undertaken by an auditor while obtaining
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Date posted: May 14, 2019. Answers (1)
- Briefly explain the following terms.
i) Analytical procedures
ii) Audit opinion.
iii) Audit working papers(Solved)
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ii) Audit opinion.
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Date posted: May 14, 2019. Answers (1)
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scenarios:
i) A bank reconciliation prepared by the Senior Chief...(Solved)
Choose the most reliable source of evidence from the two options given in each of the following
scenarios:
i) A bank reconciliation prepared by the Senior Chief Accountant of XYZ Ltd. or, A
bank confirmation received from a small branch of Zed Bank Ltd; bankers of XYZ
Ltd.
ii) Negative circularization received directly by the client from a major debtor of XYZ
Ltd. or; Positive circularization received directly by the auditor from a debtor with
respect to a debt that had earlier been written off.
iii) A logbook that shows vehicle registration number NEB 201 is registered under the
ownership of the CEO of XYZ Ltd. or; An oral representation by the CEO of XYZ
Ltd. assuring you that the car is owned by XYZ Ltd.
iv) An LPO drafted by the Storekeeper of XYZ Ltd who has been procuring goods for
XYZ Ltd. for the past ten years or;
A Goods Received Note generated by the storekeeper and signed by the supplier upon delivery
of goods.
Date posted: May 14, 2019. Answers (1)
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b) Citing two examples in each case, describe...(Solved)
a. List eight factors that an auditor should take into consideration when determining the size
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b) Citing two examples in each case, describe the quality of the following types of audit
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(ii) Evidence created by third parties.
(iii) Evidence created by the management of the client.
Date posted: May 14, 2019. Answers (1)
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techniques:
(i) Vouching.
(ii) Verification(Solved)
Briefly explain how an auditor could gather sufficient audit evidence using the following
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(i) Vouching.
(ii) Verification
Date posted: May 14, 2019. Answers (1)
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Briefly explain the importance of working papers in enhancing the quality control of an audit
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Date posted: May 14, 2019. Answers (1)
- a) Explain the importance of the going concern assumption in the preparation of the annual
financial statements of entities.
b) List four statutory, books that would be...(Solved)
a) Explain the importance of the going concern assumption in the preparation of the annual
financial statements of entities.
b) List four statutory, books that would be of interest to the auditor.
c) Describe the substantive procedures the auditor would apply to the following records:
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Date posted: May 14, 2019. Answers (1)
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Describe the general considerations which the auditors must bear in mind when evaluating audit
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Date posted: May 14, 2019. Answers (1)
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at the year end.
b) Describe the audit work you would carry...(Solved)
a) Briefly describe the audit tests you would carry out to verify trade accounts receivable
at the year end.
b) Describe the audit work you would carry out on the following replies to a receivables
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(ii) Balance not agreed by customer.
(iii) Customer does not reply to the confirmation letter.
Date posted: May 14, 2019. Answers (1)
- Describe how you would vouch a loan to an employee of Sh. 100,000 shown in the account of a
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Describe how you would vouch a loan to an employee of Sh. 100,000 shown in the account of a
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Date posted: May 14, 2019. Answers (1)
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Date posted: May 14, 2019. Answers (1)
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b) ISA 500 'Audit Evidence-Revised' provides the methods which the auditor could use
while collecting audit evidence. Using...(Solved)
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 relevant examples, examine seven methods of
collecting audit evidence
Date posted: May 14, 2019. Answers (1)
- 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....(Solved)
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
Date posted: May 14, 2019. Answers (1)
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Required;-
Explain any three considerations that an auditor uses to assess the reliability of any piece...(Solved)
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Required;-
Explain any three considerations that an auditor uses to assess the reliability of any piece of audit
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Date posted: May 14, 2019. Answers (1)
- a) Explain six limitations of gathering audit evidence.
b) Summarise three considerations that must be made for the external auditor to rely on the
work of the...(Solved)
a) Explain six limitations of gathering audit evidence.
b) Summarise three considerations that must be made for the external auditor to rely on the
work of the internal auditor.
c) In view of the financial reporting framework, explain five considerations that the auditor
should make when forming an opinion.
Date posted: May 14, 2019. Answers (1)
- a) Standardisation of working papers refers to a predetermined Format of presenting and
documenting audit findings.
With reference to the above statement, discuss three advantages and three...(Solved)
a) Standardisation of working papers refers to a predetermined Format of presenting and
documenting audit findings.
With reference to the above statement, discuss three advantages and three disadvantages
of standardized working papers.
b) Explain Four factors that could influence the acceptance of evidence obtained from a
third party.
Date posted: May 14, 2019. Answers (1)
- An auditor should perform procedures to obtain information that is used to identify the risks of
material misstatement due to fraud".
Highlight the audit procedures you would...(Solved)
An auditor should perform procedures to obtain information that is used to identify the risks of
material misstatement due to fraud".
Highlight the audit procedures you would carry out to detect the following types of fraud:
i. The motor vehicle of an employee is covered through the insurance scheme of the
company's motor vehicles.
ii. The motor vehicle of an employee is repaired using the company's funds and the amount
appears as an expense in the accounting records.
Date posted: May 14, 2019. Answers (1)
- Distinguish between errors and frauds.(Solved)
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Date posted: May 14, 2019. Answers (1)