Audit
AUDIT- THE FINAL REVIEW STAGE CHAPTER OBJECTIVE 1. THE OVERALL REVIEW OF THE FINANCIAL STATEMENTS 2. THE GOING CONCERN REVIEW 3. SUBSEQUENT EVENTS 4. THE WRITTEN REPRESENTATIONS LETTER 5. THE MANAGEMENT LETTER 1. THE OVERALL REVIEW OF THE FINANCIAL STATEMENTS Before the audit report can be signed, the audit work needs to be reviewed. The elements of this overall review
Continue reading THE AUDIT REPORT LEARNING OBJECTIVES 1. FORMAL AUDIT REPORT 2. THE UNMODIFIED AUDIT REPORT 3. THE MODIFIED AUDIT REPORT 4. EMPHASIS OF MATTER PARAGRAPH 1. FORMAL AUDIT REPORT Title: Independent Auditor’s Report Addressee: entity Introductory Paragraph: Financial statements Management’s Responsibility for the Financial Statements: preparation of F/S with IFRS and free from material misstatement whether due
Continue reading THE AUDITOR’S LIABILITY CHAPTER OBJECTIVE 1. NEGLIGENCE 2. LIABILITY IN TORT 3. QUALITY CONTROL 1. NEGLIGENCE Negligence is some act or omission which occurs because the person concerned has failed to exercise the degree of care and skill appropriate to the circumstances. In simple terms, negligence is the legal term for carelessness. Auditors may face negligence claims under two distinct
Continue reading PRACTICAL INTERNAL AUDIT ON INVENTORIES Learning Objectives I.INTRODUCTION II. COST OF INVENTORIES III. METHODS OF CALCULATING THE COST OF INVENTORY IV. INVENTORY COUNT V. AUDIT PROCEDURE ………………………………………………………………………………….. I.INTRODUCTION Inventory consist of : Goods purchased for resale Consumable stores ( such as oil) Raw Material and components ( used in the production process) Partly-finished goods ( usually called Work in progress-WIP) Finished
Continue reading PRACTICAL AUDIT ON TANGIBLE FIXED ASSETS Learning Objectives I.INTRODUCTION II.TRANSACTIONS AND ACCOUNT BALANCE ASSERTION AND AUDIT PROCEDURE III. FIXED ASSET REGISTER …………………………………………………………………………………………………………… I.INTRODUCTION Non-current assets are those assets which are held for continuing use in the business and are not intended for resale. Tangible Non-Current Asset- possesses a physical existence. E.g. land and building, plant, fixtures and fittings. II.TRANSACTIONS AND
Continue reading I.INTRODUCTION In practice, cash in Company is the most important asset among other assets and liabilities, so company should have strong internal control. Payment and receipts should be verified and approved by authorized persons to avoid fraud or errors. Payment and receipt process should be complied with internal policy for internal audit purpose. Material or immaterial concept will be focused
Continue reading Question 1 Audit Procedures are carried out by the auditor in order to generate audit evidence. There are a number of audit testing procedures that may be available to the auditor. Which procedures are actually used will depend on the area that is being audited, and the evidence available to the auditor. Required: List and explain four audit procedures that
Continue reading