Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets

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• List five limitations of an audit
• List two advantages and two disadvantages of using standardised audit programmes during audit assignments
• Explain the computer assisted audit techniques listed below: Embedded audit facilities and Integrated test facilities
• During the course of an audit, the auditor attempts to obtain sufficient relevant and reliable evidence to provide the satisfaction that the financial records are completed and accurate. One of the ways that the auditor obtains satisfaction is to select representative samples of transactions and balances for detailed testing, such samples being made using either statistical of non-statistical methods. Describe three areas where the judgment will be exercised by the auditor when using statistical sampling
• Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
• What are computer assisted audit techniques (CAATs)?
• List and briefly explain the general forms of qualifications available to the auditor in drafting his audit report, stating the circumstances in which each qualification is appropriate. Give an example of each circumstance
• List six contents of an unqualified audit report
• Define and explain the meaning of an audit programme
• Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit
• Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor. Required; For each of the situations listed below, one form of audit evidence which is relevant and explain in each case whether that form of evidence is reliable and sufficient:- A trade debtor shown in the balance sheet, A batch of work-in-progress on the shop floor at the year end and A contingent liability disclosed in the notes to the accounts
• You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required:Provide the audit trainees with guidelines on how they should prepare audit working papers
• Explain the reliability of bank statements as audit evidence
• You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: Identify the type of information that the audit trainees should include in the audit working papers
• Identify any four contents of an audit engagement letter
• What is the purpose of an audit report ?
• You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper. ‘Required: Explain the importance of audit working papers
• You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: List any four advantages of standardized audit working papers
• List and briefly explain five disadvantages of an interim audit
• Outline the basic elements of an unqualified audit report
• Draft an online audit programme for the fixed assets of a large manufacturing company
• One of the responsibilities of the directors of a company is to establish strong internal controls to safeguard the assets of the firm.Required:State the audit objectives of internal controls on fixed assets
• The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: State the important factors that must be considered when assessing the reliability of audit evidence
• What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?
• Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements
• The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: What factors would influence the auditor to accept third party certificates as audit evidence?
• Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain
• The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: What factors would influence the judgment of the auditor with regard to sufficiency of audit evidence?
• Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor Required;List four benefits that the auditor would obtain from working papers that meet the above requirements
• Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor . Required; Briefly explain giving two examples, the quality of audit evidence generated by third parties
• Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
• A very important aspect of the audit of the financial statements by an external auditor is the observation of the physical stocktaking. Required: Explain the audit tests that the auditor would apply to establish the physical qualities of stock and their ownership
• Distinguish between a procedural audit and a balance sheet audit
• State the specific representations you, as an auditor, would wish to obtains from the management in respect of ;Assets and Liabilities
• Define the term audit programme
• You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?
• How does audit planning assist in the conduct of an audit?
• Write brief explanatory notes on the following audit terms: Vouching audit;
• A very important aspect of the audit of the financial statements by an external auditor is the observation of the physical stocktaking. Required: List four procedures that an auditor would need to undertake prior to attending a company‘s stock-take
• The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: State the extent to which you, as an external auditor, can rely on the work of the internal audit function