Month: March 2022

The actual approach adopted by the auditor will depend on: The auditor‘s experience with the client. The control environment. The complexity of the computerized information system. The risk profile of the client. The risk of misstatements in the financial statements. Read More …

These are equivalent of books and records in a manual system and are described as either transaction files or master files. 1. Transaction files. These are equivalent of journal such as sales journal, the purchases journal or the cash book. Read More …

Programs are the instructions telling the computer how each type of transaction is to be processed. These instructions include routines of checking and controlling data, matching data with master files and performing mathematical operations on data. E.g. for sales transactions, Read More …

Unqualified opinion. Disclaimer opinion Qualified opinion Adverse opinion 1. Unqualified opinion. This is issued when the auditor is satisfied in all material aspects that enable him express the required opinion on financial statements without any reservation. This is sometimes called Read More …

The Companies Act does not stipulate the form the auditor‘s report should take. The auditing standards seek to ensure that the auditor‘s report is clear and unambiguous. To this end, it seeks to standardize the form of the auditor‘s report. Read More …

Section 162(1) of the Companies Act stipulates the statements that should be expressly stated in the auditor‘s report. These are; Whether the auditor has obtained all the information and explanation which to the best of his knowledge and belief were Read More …