All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
principles of auditing and other assurance services

Questions and Answers of Principles Of Auditing And Other Assurance Services

Stenton Toys Pty Ltd is a toy retailer with shops in each of the Australian state capitals. Stenton has a head office and a central warehouse in Brisbane. All stock purchases are made centrally and
Your firm is responsible for auditing the financial statements of Hucknall Manufacturing Ltd for the year ended 31 May 2015. The company operates from a single site. Its sales are \($5\) million and
Your client, FNP Ltd, engaged the services of Z & Co., a firm of real estate valuers, to perform a valuation of all real estate held by the company. As a result of this revaluation, property values
Your client is Estate Jewellers Pty Ltd, a proprietary company that specialises in estate jewellery.Estate Jewellers purchases pieces at auction, cleans and remodels them, and then sells them to the
Your firm is the auditor of GreenBrown Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2015, which identifies cost and accumulated
Your firm is the auditor of Daybrook Insurance Brokers Ltd, which operates from a number of branches and provides insurance for the general public and businesses. The company obtains insurance from
Your firm is auditing the financial statements of Newthorpe Manufacturing Ltd for the year ended 30 June 2015. You have been assigned to the audit of the company's property, plant and equipment,
Purchase orders become part of the transaction trail of documentary evidence that directly supports which assertion for purchase transactions?A. Accuracy or valuation assertion.B. Existence or
It is increasingly common for companies to use online banking to make payments to suppliers. As an auditor, describe controls you would expect to find in place over such a system.
Explain how analytical review procedures can be applied to the payroll expenses in the income statement.
Explain the key assertion at risk with regard to payables balances.
Your firm is the external auditor of TangleWeb Ltd, which manufactures electrical devices for the airline industry. You have been asked to give advice on the internal controls that should be in place
The internal auditor of the Jerry Bowen group of companies is carrying out a review of the internal controls applied by some of the group's subsidiaries in relation to purchases. Work has just been
You are reviewing the audit work for Dream Weevel Ltd — a design house with 50 staff in various office locations. Dream Weevel Ltd outsources its payroll process to an online payroll services
Your firm is the auditor of JebStone Minter Ltd, and you are planning the audit work you will carry out in verifying accounts payable and accruals at the company's year-end of 30 June 2015. You are
You are the audit senior on the MM Ltd audit. MM is a distributor of hair care products including shampoos, conditioners and mousses. MM uses an online computer system. No goods are manufactured
You are the audit senior in charge of the audit of Black Ltd, and you are auditing the company's trade creditors at 30 June 2015. A junior member of the audit team has been checking
In planning the audit, the auditor should assess materiality at two levels:A. The preliminary level and the final level.B. The company level and the divisional level.C. The financial report level and
Professional standards recognize that a misstatement that is quantitatively immaterial may be qualitatively material. In regard to these items, professional standards require the auditor to:A. Plan
In making judgements about materiality at the account balance level, the auditor must consider the relationship between it and materiality at financial report level as a whole. This should lead the
Which of the following is true?A. High business risk always leads to high control risk.B. Lower control risk leads to higher levels of substantive testing.C. The auditor designs tests to address all
An auditor has obtained an understanding of the internal control structure and has decided that the appropriate controls are ineffective. The most appropriate audit strategy is:A. The lower assessed
Which of these would not be considered corroborating information?A. Oral evidence obtained from client personnel.B. Confirmation from vendors.C. Cancelled cheques held by the client D. The
In the final analysis, the amount and kinds of evidential matter required to support the auditor's opinion should be determined by:A. The engagement letter.B. Auditor judgement.C. The audit
The auditor has determined that there is a preponderance of persuasive evidence for each financial statement assertion that is material, and therefore a reasonable basis for their opinion.Which of
Which of the following would generally be considered the least appropriate form of evidence?A. The auditor's calculation of earnings per share.B. Prenumbered sales invoices prepared by the accounts
Which of the following are substantive procedures?i. Analytical procedures.ii. Tests of detail of balances.iii. Tests of controls.A. (i) and (ii) only.B. (ii) and (iii) only.C. (i) and (iii) only.D.
Under what circumstances would the auditor request the accounts to be adjusted for individually immaterial errors?
Explain the term ‘materiality’ in the context of financial reporting.
List and describe the financial statement assertions in relation to balances.
What is the significance of materiality in relation to the auditor's objectives when obtaining audit evidence?
Describe the two main alternative audit strategies that may be adopted in performing an audit.
What is the difference between how the auditor uses materiality at the planning stage and at the final review stage of the audit?
Give examples of items that might be included in a management representations letter.
What are the factors that affect the reliability of evidence?
Describe different types of audit procedures that might be used by the auditor in ensuring the assertions for inventory.
Corroboratory evidence inspected by an auditor in the course of an audit includes:1. a letter from a customer directly to the auditor confirming consignment stock held at the year-end 2. a supplier
Types of audit procedures In order to arrive at an audit opinion, auditors must obtain sufficient appropriate audit evidence.ASA 500 identifies the types of auditing procedures that an auditor might
Substantive procedures and audit evidence An auditor may perform the following three types of substantive procedures: (a) tests of details of transactions; (b) tests of details of balances; and (c)
You have just completed audit testing on the 30 June 2015 accounts of JJJ Ltd, a manufacturing firm. Extracts from the draft financial statements are given below.The audit manager has asked you to
Audit procedures may be classified into several categories, including:1. Procedures designed to obtain an understanding 2. Tests of controls 3. Analytical procedures 4. Substantive testing of
You are an in-charge auditor discussing audit procedures with members of your team. A new member of staff says that audit evidence should be based on confirmations received from outside the
You are an audit senior and your firm audits Miningwell Ltd, a large mining company that operates all over Australia. Consider the following situations that have arisen during the audit.1. Miningwell
You are about to complete the planning stage of the audit of Stack Print Ltd and you are considering your approach to several events that have occurred during the year. Stack Print Ltd's revenue for
You are the auditor of Davidson Electronics Ltd a manufacturer of a variety of electronic gadgets for industry and home use. They have a factory where all the products are manufactured and maintain a
You are nearing completion of the 31 December 2015 audit of ABC Wholesalers Ltd. The figures below have been extracted from the final draft financial report.During your review of the audit files, you
Audit evidence and quality You are planning the audit of Big Digger Ltd (BD), a company which manufactures gardening equipment. Included in the balance sheet of BD, under non-current assets, is an
Obtain a set of recently audited financial reports published in Australia.Requireda. Describe the factors that might have considered by the auditor in determining the overall materiality of the
The relationship between the required understanding of the internal control structure and the preliminary audit strategy is that:A. Normally, greater understanding is required when the lower assessed
Where a test of controls reveals some problems, under what circumstances will the auditor still be able to rely on the control system?A. The total error found was immaterial to the financial
What is the purpose of the preliminary assessment of control risk?A. To obtain a reasonable expectation of controls so as to decide on an appropriate audit strategy.B. To determine the extent to
If an auditor has performed tests of controls part-way through a company's year at an interim visit, what further procedures are required at the final audit stage?A. Further tests of controls over
Which of the following would be a test of controls relating to sales?A. Checking sales orders to ensure orders over a certain value have been authorised by the credit controller.B. Checking that the
What would be an appropriate sample of invoices to gain reasonable assurance that all payments are properly authorised as part of the annual audit?A. Randomly pick one month and select every invoice
Testing the work of the internal auditors is least likely when the external auditor has decided that:A. The internal auditors will be used to directly assist in the conduct of the audit.B. The
In a computer information system control procedures that provide reasonable assurance that the recording, processing and reporting of data are properly performed for specific applications are known
The statement that is accurate concerning audit testing is:A. The test data approach is relatively complicated, time consuming and expensive.B. The test data approach involves dummy transactions
Identify the three steps in a preliminary assessment of risk.
What audit strategy is the auditor likely to adopt if, at the planning stage, control risk is assessed as less than high?
Why do auditors want to rely on internal controls wherever possible?
Identify four different types of procedures that an auditor might use when carrying out tests of controls.
What is the difference between a walk-through review test and a test of controls?
Outline the factors that will determine whether the auditor has obtained sufficient appropriate evidence to support a particular risk assessment.
What is meant by auditing around the computer and why does this increase audit risk?
What is the difference between test data and integrated test facility?
What are the difficulties an auditor might come across in using audit software?
Jayne Rydell is the auditor of Big Spanners Ltd. At the planning stage of the audit, the internal controls were documented and the preliminary assessment of internal controls suggested that they were
Your firm has been engaged to audit the financial report of Pellerton Ltd. In obtaining an understanding of internal control relating to purchases, the following questionnaire is used:1. Are all
Part A In determining whether and to what extent to use the work of internal auditors, ASA 610 Using the Work of Internal Auditors, paragraph 8 states that the external auditor shall determine:a.
Jasmine Motor Factors Ltd sells car parts to vehicle repair centres. Customers have a login into Jasmine's parts system which allows them to place orders for parts online. If orders are made on the
Your firm is the external auditor of Bangers-4-U Ltd, a car hire company. The company has an internal audit department, which you have assessed as being well resourced, and an effective and
Atlantis Standard Goods (ASG) Co has a year-end of 30 June 2015. ASG is a retailer of kitchen appliances such as washing machines, refrigerators and microwaves. All sales are made via the company's
You are the manager of a large auditing firm and have recently finalised the audit of Orico Ltd, a large, publicly-listed company. The audit went smoothly and no major problems were encountered. As
Walsh Co. sells motor vehicle fuel, accessories and spare parts to retail customers. The company owns 25 shops.The company has recently implemented a new computerised wages system. Employees work a
Greener Pasture Pty Ltd (Greener Pasture) is a private nursing home.The table below shows an extract of the audit senior's findings based on a review of controls documentation and interviews with
You are an audit senior in Brennon & Co., a firm providing audit and assurance services. At the request of an audit partner, you are preparing the audit program for the income and receivables systems
Assume you are planning the 31 March 2015 audit of Growth Ltd, a large financial planning association based in Melbourne. Growth has offices in all capital cities of Australia and established an
If the predominantly substantive approach preliminary audit strategy is used, planned detection risk will be:A. Low or very low.B. Moderate or high.C. At the higher level.D. High or very high.
Which of these is not considered a substantive procedure?A. Analytical procedures.B. Tests of controls.C. Tests of details of transactions.D. Tests of details of balances.
Which of these would not be considered to be a test of details of balances?A. Accounts receivable confirmations.B. Observing the entity's stocktake.C. Tracing an invoice to the sales journal.D.
Which of these is not compatible with a high level of inherent and control risk?A. Detection risk is low.B. A larger sample should be used.C. Year-end tests are preferable.D. Substantive procedures
The audit program is basically a list of:A. Audit procedures to be performed.B. Detailed audit objectives.C. Account balances and their related assertions.D. Control policies and procedures to be
Extensive tests of details for an income statement account are least likely to be required when:A. Analytical procedures reveal some unexpected fluctuations.B. Inherent risk is high.C. Detection risk
What financial statement assertion is most often tested by CAATs?A. Valuation.B. Rights and obligations.C. Measurement.D. Disclosure.
Why are related party transactions a risk area for auditors?A. They have minimal disclosure requirements.B. They have a higher than average risk of irregularities.C. They have a direct impact on
Which components of the audit risk model can be controlled by the auditor? Discuss the interrelationships.
Identify and explain the three steps in assessing the risk of material misstatement.
Give three reasons why the predominantly substantive approach can be more suitable to smaller entities.
Identify the three types of substantive procedures and discuss the effectiveness of each.
Why are cut-off tests a special category of tests of details of transactions?
Explain why there is an increased audit risk from conducting procedures before the end of the reporting period and identify two ways in which this increased risk is controlled.
Why may an auditor decide to perform tests of details on income statement accounts rather than relying on analytical review?
How can generalised software be used to assist in performing substantive procedures during the audit?
What steps may the auditor perform in evaluating the reasonableness of accounting estimates?
Why is the audit of related party transactions a particular risk area for auditors?
Angela is an audit manager in a medium-sized firm of chartered accountants. For many years she has carefully considered the audit risk model in her testing. When controls have been good, she has
The following are a list of risks to the financial report:1. Senior management has offered large bonuses to managers to meet financial targets.2. Analytical procedures for a manufacturer show a
It is March 2015 and you are planning the financial report audit of your client Plush and Plastic Ltd for the year ended 30 June 2015. Plush and Plastic manufacture speciality toys and sell them
Dawson Household Ltd is a wholesaler of household goods including furniture, kitchen appliances, soft furnishings and electronic equipment. Dawson purchases products directly from the manufacturers
Draft financial information for Darfield Electronics for the year to 30 June 2015 is as follows:RequiredAnalyse the information above, identify audit risks and outline how the auditor should respond

Showing 400 - 500 of 2090

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved