Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A. Computer technology is an area of auditing which requires advanced knowledge beyond that of the typical auditor. Notwithstanding, some basic knowledge is a must

A. Computer technology is an area of auditing which requires advanced knowledge beyond that of the typical auditor. Notwithstanding, some

basic knowledge is a must for the typical auditor.

  1. Explainthe term "Electronic Commerce
  2. Describethree (3) areas of risk that are associated with Electronic Commerce.

B. Discuss the following situations in the context of the independence of the auditor, showing clearly the principles involved, and whether the case would result in any breach of the professional code of ethics.

i.The audit manager in charge of the audit assignment of Andrew Co holds 1,000 $1 ordinary shares in the company (total shares in issue - 100,000). The audit partner holds no shares.

ii.The recurring audit fee receivable from Janet Co, a private company is $100,000. The total fee income of the audit firm is $700,000.

iii.The audit senior in charge of the audit of Margot Bank Co has a personal loan from the bank of $2,000 on which she is currently paying 12% interest.

iv.The audit partner is responsible for two audit assignments, Harry Co and Jean Co. Harry Co has recently tendered for a contract with Jean Co for the supply of material quantities of goods over a number of years. Jean Co has asked the audit partner to advise on the matter.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Textbook Of Financial Accounting And Analysis

Authors: Gaurav Agrawal

1st Edition

9350840901, 9789350840900

More Books

Students also viewed these Accounting questions

Question

Fixed dollar match: 75 cents per each $1 employee contribution.

Answered: 1 week ago