QUESTION 1

IESBA Code establishes the fundamental principles of professional ethics relevant to the auditor when conducting an audit of financial statements and provides a conceptual framework for applying those principles. As an auditor you are supposed to work within that framework and abide to those fundamental principles.

Required:

List and explain in detail those principles according to International Ethics Standard Board for Accountants' code of ethics for professional Accountants (IESBA Code) (25marks).

QUESTION 2

Auditing can be defined as a process carried out by a suitably qualified, competent and independent auditors whereby the accounting records underlying a financial statement of an enterprise are subjected to scrutiny. The auditing process should enable and auditor to form an opinion as to whether the financial statements give a true and fair view of the business performance and standing.

Required:

a) State and explain the key factors that constitute the definition of auditing (15 marks)

b) List and describe in detail audit risk components. (10 marks)