1 A:

Mr. Khan graduated from prestigious university from U.K. with a degree of Masters MBA. He does not have any work experience but he got the managerial position in the company through reference. While approving the final financial report of the company he did not follow the proper procedure of reviewing it and just relying on the report. Submitted by his junior accountant as a result there are many errors in the books of account. This lead to the process of the company based on the above scenario he is adamant to admit his mistakes. They hired Earnest & Young audit firm to verify the accuracy of the financial report approved by Mr. Khan. Based on the scenario:

1. Describe a well- detailed standardized auditing rules and regulations that Earnest & Young should use. (3 MARKS)

2. If you were the head auditor of Earnest &Young audit firm, what resolutions can you propose to the owner of the company to resolve the issues? (2 MARKS)

QUSTION 1B:

Mr. Sameer the CEO of audit firm in Oman. The firm is operating successfully more than ten years now and having so many clients like Oil and Gas Company and Construction Company. One big client BP Company requested for management audit as required for bank loans. Based up on the scenario.

1. Design a management audit procedures and requirements needed by BP Company in order to be able to attain their goal (3 MARKS)

2. Make a recommendations on how standard audit can be done in the company? (2 MARKS)