• Explain how auditing theory might give useful insights into the practice of auditing. Your answer should make reference to the postulates and concepts of auditing

• Why do you think that the collapse of Enron and other scandals affecting large companies may have resulted in a widening of the audit expectations gap?
• Explain why the general public is just as interested in the way that large companies, including banks, behave as are the shareholders of those companies. What do you think is meant by the public interest
• The trade payables figure in most companies is normally material in the context of the financial statements taken as a whole. What assertions do you think that management is implicitly making about the trade payables figure? Suggest one audit step for each assertion, which you might take to prove that the assertion is valid.
• New rules have been introduced by the european parliament, and it is anticipated that these new rules will lead to considerable improvements in audit quality. evaluate how audit quality can be improved?