1. What risk are associated with internal controls (5 marks)
2. Your firm Jones LLC (Jones) have won a new client Manna Ltd (Manna) they are based in Europe and design and manufacture men's clothing. They have recently entered the market for women's clothing after 20 years' experience in menswear and have a niche market. One of the partner's Dexter Jones knows the new Managing Director of Manna Ltd as they have worked together in the past. Dexter has said "We have excellent quality control in our practice, so the friendship will not be an issue"Explain why objectivity and independence are important principles in the context of an external audit engagement. (5 marks)
3. Name 4 responsibilities for an engagement partner for quality control (4 marks)
4. Give 4 audit procedures for Test of Controls and an example for each control (8 marks)
5. Give 3 audit procedures for Substantive Procedures and an example for each control (6 marks)
6. What assertions relating to trade receivables would need to tested through audit procedures (4 marks)
7. Give 3 audit procedures conducted to test Trade receivables assertions (3 marks)