Month: April 2021

Effect of controls on the audit   This  considers the basic components of control systems and how the auditor fulfils their objectives for assessing control risk.   The auditor will ascertain the internal control system to assess whether it is Read More …

Audit evidence   In order for the auditor’s opinion to be considered trustworthy, auditors must come to their conclusions having completed a thorough examination of the books and records of their clients and they must document the procedures performed and Read More …

Purpose of planning   ‘The objective of the auditor is to plan the audit so that it will be performed in an effective manner.’   [ISA 300 Planning an Audit of Financial Statements, 4]   Audits are potentially complex, risky Read More …

Audit risk   One of the main requirements of the audit is for the auditor to:   ‘…obtain sufficient appropriate evidence to reduce audit risk to an acceptably low level…’   [ISA 200 Overall Objectives of the Independent Auditor and Read More …

The need for professional ethics   Professional accountants have a responsibility to act in the public interest. The purpose of assurance engagements is to increase the confidence of the intended users, therefore the users need to trust the professional who Read More …

Objectives and importance of corporate governance   Corporate governance is the means by which a company is operated and controlled.   The aim of corporate governance is to ensure that companies are run well in the interests of their shareholders, Read More …

The need for regulation   The role of the auditor has come under increased scrutiny over the last thirty years due to an increase in high profile audit failures. The most high profile case, and the catalyst for regulatory change, Read More …

What is assurance?   An assurance engagement is: ‘An engagement in which a practitioner obtains sufficient appropriate evidence in order to express a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party Read More …

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6

Section 3   ANSWERS TO OBJECTIVE TEST CASE QUESTIONS AUDIT FRAMEWORK 1   Yes No To monitor and review the effectiveness of the ü newly established internal audit function To evaluate the balance of skills, experience and ü independence of Read More …