Unit: Audit & Assurance
15 QuestionsYour firm has been appointed as Kisomo Kizuri's new auditors.
Required:
Analyse audit tests you might carry out on the income and expenditure from fund raising events.
(i) Environmental audit.
(ii) Corporate governance.
(iii) Enterprise risk management (ERM).
(i) Segregation of duties.
(ii) Authorisation and approval.
(iii) Physical controls.
Evaluate four procedures that an audit firm might apply before relying on such an expert.
(i) Audit fees.
(ii) Conflict of interest.
(iii) Due care and skilI.
(i) A major customer owing the company a substantial amount, has filed for bankruptcy. No provision for this has been made in the financial statements.
(ii) Some of the company's inventory is of a special nature. The expert you were relying on to value them might not be available to carry out the valuation in time for issuance of an audit report. You have to rely on management representation.
(iii) A major supplier has gone out of business and there is no immediate alternative for the raw material question.in
(iv) After the financial year end, a major fire broke out destroying machinery that had been purchased at the end of the year.
(i) Reasonable assurance.
(ii) Opinion shopping.
Want to join the discussion?
Log in to post comments and interact with tutors.
Login to Comment