As a student of Auditing subject, you are expected to be fully aware of the different types of audits and their purposes. Choose the type of audit which builds confidence in the integrity of corporate reporting for the benefit of stakeholders and society at large. a. Environmental Auditing b. Value for Money c. Internal Auditing d. External Auditing

As a student of Auditing subject, you are expected to be fully aware of the different types of audits and their purposes. Choose the type of audit which builds confidence in the integrity of corporate reporting for the benefit of stakeholders and society at large. a. Environmental Auditing b. Value for Money c. Internal Auditing d. External Auditing

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter1: Quality Auditing: Why It Matters

Section: Chapter Questions

Problem 18RQSC

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Using your selected objective, create an audit plan of the organization's financial statements that address the following, with support each with appropriate auditing standards. 1. Business Risks 2. Management Assertions 3. Audit Risk 4. Internal control and effect on audit procedures
Problem 6: Planning the audit is essential for a. obtaining sufficient, appropriate evidence b. keeping costs reasonable to the client c. avoiding a misunderstanding with a client. Elaborate on each step below for the auditor’s objective in achieving the above essential elements. Discuss in detail what each step consists of and give an example for each. Accept the client and perform initial audit planning Understand the client's business and industry Assess client business risk Perform preliminary analytical procedures Set materiality levels and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Gather information to assess fraud risks Develop overall audit plan and program
Direction: summarize each step of the risk-based audit process. • Establishing audit objective• Agreeing to the terms of engagement• Obtaining knowledge of the business• Development of an overall audit plan
The use of an audit engagement letter is the best method of assuring the auditor will have which of the following?Select one: a. Cooperation from other auditors b. Auditor will obtain sufficient appropriate audit evidence. c. Access to all books, accounts and vouchers required for audit purpose d. Management representation letter
Problem 12: Describe the stages of an audit from beginning to end. Detail all steps in a comprehensive summary outlining individual steps and examples of how those steps would be displayed/observed/etc. in a company. Be sure to elaborate on each section by detailing, in simple terms, the objective of the specific stage. For example, Step 1: Plan the Audit > Establish an understanding with the client as to the nature of the engagement. The auditor should prepare an audit engagement letter that outlines……..
Choose the preliminary engagement activity of an auditor. O a. Establishing an understanding of the term overall audit strategy O b. Assist the management in identifying and evaluating events O c Establishing an understanding of the terms of the engagement O d. Establishing an understanding of the term of audit planning
A tool used by auditors that serves as a cue to guiding audit planning around management’s assertions in various disclosures is known as: a. a GAAP Guide b. an audit planning meeting c. an audit program d. a disclosure checklist
A review of how an organization’s management and its operating procedures are functioning with respect to their effectiveness and efficiency in meeting stated objectives. a. External Audit b. Operational Audit c. Cash Audit d. Internal Audit
{Auditing} 48. Identify the relevance of “Professional Competence and Due Care” with one of the following options. a. Duty of Auditor b. Powers of auditor c. Code of Ethics for professional accountants d. Role of Regulatory and professional bodies
If auditor maintains high degree of independence, it will result in _________ a. Attention of media b. Good relationship with the client c. Greater reliability of financial statements d. Goodwill of the audit firm
Direction: summarize the concept of the following audit considerations.1. Competence2. Laws and Regulations3. Reliance on Experts
NOTE: PLEASE TAKE YOUR TIME AND ANALYSE THE QUESTION VERY WELL. PROVIDE DETAILED INFORMATION ANSWERS AND INFORMATION AS YOU SOLUTION. THANK YOU. You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them?