Month: February 2021

A.     INTRODUCTION  There has been a huge growth in information that is available today in all aspects of business.  The use of the internet has made access easy and more and more information is been required in all areas, Read More …

AUDIT EVIDENCE INTRODUCTION   The purpose of ISA 500 is to establish standards and provide guidance on what constitutes audit evidence in an audit of financial statements, the quantity and quality of audit evidence to be obtained, and the audit Read More …

INVESTMENTS IN ASSOCIATES AND INTERESTS IN JOINT VENTURES Associates Sometimes the investment in another entity is not enough to give it control, but such is the amount of voting power acquired that the investor exercises significant influence over the investee. Read More …

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 performed in Read More …

RISKS TO WHICH FIRMS ARE EXPOSED   A key risk facing any audit firm is that the business will fail.  In this respect an audit firm is no different from any other business venture.   Risks specific to audit firms: Read More …

FRAUD   An auditor’s main concern in an audit is the risk of a material misstatement in the financial statements.  These material misstatements can arise from fraud or error.   An error is an unintentional misstatement in the financial statements, Read More …

PROFESSIONAL APPOINTMENTS   ADVERTISING   ISA 200 sets out the ethical principles governing the auditor’s professional responsibilities.  One of them is professional behaviour.  A member is expected to comply with relevant laws and regulations and should avoid any action that Read More …

FORMING AN AUDIT OPINION There are various audit opinions which can be expressed on a set of financial statements. The auditor needs to consider a number of key matters: Has he received all the information and explanations necessary Has he Read More …

A)  CORPORATE LEVEL The Role of the Corporate Centre As we have seen from chapter 1 strategy occurs at different levels of the organization. Therefore different strategic choices are made for the different levels albeit there will be congruence between Read More …

REVISION QUESTIONS AND ANSWERS QUESTION ONE Organizations are becoming increasingly influenced by their external environment. In what ways does the understanding of the external environment factors enable managers to make better decisions? QUESTION TWO Explain how the ideas of scientific Read More …