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• Examine the authority for acquisition of plant by reading the minutes of the board.
• Check quotations made to ensure that the company's policy on acquisition was followed.
• Check the invoices, receipts and ensure that the name of the company is reflected in all of
them
• Obtain the asset requests ensure that the name of the machine, serial number, data and
cost are all reflected.
• Inspect the plant to confirm for existence.
• Check the insurance policy and confirm that it is in the name of the company.
• Check the purchase price, incidental experts to establish its valuation-.
• Check depreciation and ensure that it is in conformity with the company's policy
Kavungya answered the question on May 14, 2019 at 13:54
- a) Argue the case for carrying out risk analysis during an audit
b) Describe eight procedures for audit of inventory(Solved)
a) Argue the case for carrying out risk analysis during an audit
b) Describe eight procedures for audit of inventory
Date posted: May 14, 2019. Answers (1)
- Describe the audit work that should be carried out by an auditor on suppliers invoices in the
course of auditing purchases.(Solved)
Describe the audit work that should be carried out by an auditor on suppliers invoices in the
course of auditing purchases.
Date posted: May 14, 2019. Answers (1)
- 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
confirmation from a client's bank.
Date posted: May 14, 2019. Answers (1)
- Briefly explain the following terms.
i) Analytical procedures
ii) Audit opinion.
iii) Audit working papers(Solved)
Briefly explain the following terms.
i) Analytical procedures
ii) Audit opinion.
iii) Audit working papers
Date posted: May 14, 2019. Answers (1)
- 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...(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)
- a. List eight factors that an auditor should take into consideration when determining the size
of an audit sample.
b) Citing two examples in each case, describe...(Solved)
a. List eight factors that an auditor should take into consideration when determining the size
of an audit sample.
b) Citing two examples in each case, describe the quality of the following types of audit
evidence:
(i) Evidence originated by the auditor.
(ii) Evidence created by third parties.
(iii) Evidence created by the management of the client.
Date posted: May 14, 2019. Answers (1)
- Briefly explain how an auditor could gather sufficient audit evidence using the following
techniques:
(i) Vouching.
(ii) Verification(Solved)
Briefly explain how an auditor could gather sufficient audit evidence using the following
techniques:
(i) Vouching.
(ii) Verification
Date posted: May 14, 2019. Answers (1)
- Briefly explain the importance of working papers in enhancing the quality control of an audit
assignment.(Solved)
Briefly explain the importance of working papers in enhancing the quality control of an audit
assignment.
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:
i. The accounting records
ii. The company's minute book
Date posted: May 14, 2019. Answers (1)
- Describe the general considerations which the auditors must bear in mind when evaluating audit
evidence.(Solved)
Describe the general considerations which the auditors must bear in mind when evaluating audit
evidence.
Date posted: May 14, 2019. Answers (1)
- 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...(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
circularisation:
(i) Balance agreed by the customer.
(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
client.(Solved)
Describe how you would vouch a loan to an employee of Sh. 100,000 shown in the account of a
client.
Date posted: May 14, 2019. Answers (1)
- Justify the use of previous year's financial statements while carrying out an audit assignment.(Solved)
Justify the use of previous year's financial statements while carrying out an audit assignment.
Date posted: May 14, 2019. Answers (1)
- Explain five benefits of an asset register to the auditor.(Solved)
Explain five benefits of an asset register to the auditor.
Date posted: May 14, 2019. Answers (1)
- Discuss five assertions that an auditor should consider during the conduct of substantive
procedures in an audit(Solved)
Discuss five assertions that an auditor should consider during the conduct of substantive
procedures in an audit
Date posted: May 14, 2019. Answers (1)
- 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...(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)
- 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...(Solved)
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 of audit
evidence
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)