Month: February 2021

NATURE AND STAGES OF INVESTMENT APPRAISAL Nature Replacement Investment Investment for Expansion Product Improvement/Cost Reduction New Ventures Strategic Investment – may satisfy overall objectives but might not satisfy normal financial criteria. Statutory Requirements/Employee or Community Welfare – may not produce Read More …

INTRODUCTION Corporate Governance can be defined as the system by which organizations are directed and controlled.  BEST PRACTICE A “Code of Best Practice” should outline the recommendations listed below:- Some of the main recommendations are: The roles of chairman and Read More …

INTRODUCTION It is often assumed that the single objective of commercial entities is: To Maximise the Value of the Firm Or To Maximise the Wealth of the Shareholders In reality, firms have multiple, and often conflicting, objectives and will seek Read More …

THE ROLE OF THE OFFICE OF THE AUDITOR GENERAL (OAG) The office of Auditor General of Rwanda (OAG) was established in 1998 and began its operations in 2000.  The 2003 Constitution of the Republic of Rwanda recognised OAG as the Read More …

. REVIEW CONSIDERATIONS       Review Procedures   An auditor must perform and document an overall review of the financial statements before making an audit opinion.  This review, along with the conclusions drawn from other audit evidence obtained, gives Read More …

ENTITY’S COMPUTER SYSTEMS AND CONTROLS Computer systems In the modern age many businesses use computer systems to help them run their business and produce financial information.  Directors are still required to put into place safeguards to protect the assets of Read More …

SAMPLING ISA 530 states that when designing audit procedures, the auditor should determine appropriate means for selecting items for testing so as to gather sufficient appropriate audit evidence to meet the objectives of the audit procedures.  Auditors do not examine Read More …

ASSERTIONS Auditors need evidence to support the financial statement assertions.   By approving the financial statements, the directors are making representations about the information therein.  In other words they are making certain assertions about the figures and disclosures contained within the Read More …

INTERNAL CONTROL – ASSESSING CONTROL RISK AND TESTS OF CONTROLS INTERNAL CONTROL Definition and components ISA 315 defines internal control as the process designed and implemented by those charged with governance to provide reasonable assurance about the achievement of the Read More …

AUDIT PLANNING AND SUPERVISION AUDIT PLANNING ISA 300 planning an audit of financial statements establishes standards and guidance on the considerations and activities applicable to planning an audit. The auditor should: Plan the audit so that the engagement will be Read More …