KNEC| KASNEB| KISM| Study notes and Revision materials for schools in Kenya. KNEC certificate courses, Diplomas, Higher Diplomas, KISM courses cpsp-k and aps-k, KASNEB cpa, atd, cs, cifa, ccp, dcm, cict and cict, Ksce and Kcpe
i) Standardised audit working papers enhance efficiency in the manner in which they are prepared and reviewed. ii) They enhance training of audit assistance by following laid out audit programmes. iii) They are also useful in the delegation of work to audit staff. iv) They provide a means to control the quality of audit work.
1. Information concerning the legal and organizational structure of the entity. 2. Extracts of copies of important legal documents, agreements and minutes. 3. Information concerning the industry, economic environment and legislative environment within which the entity operates. 4. Evidence of the planning process including audit programmes and any changes thereto. 5. Evidence of auditor‘s understanding
Quantities • Obtain copies of count sheets used at the stock take. • Ensure the stock sheet include the specific date when stock count was actually carried out. • Check whether there were any post-count adjustments made to quantities of stock recorded in the count sheets. • Ensure no repetitions of stock counts. This would
i. Where the company is empowered by the Articles of Association to pay interim dividends, in which case the auditor will ascertain the company‘s interim performance for this purpose. ii. Where it is a law requirement for a company to publish interim performance e.g. banks. iii. Where an organization is operating in a volatile market
i) Cost The audit process is made expensive especially for small firms, hence it may only be suitable for large companies with many transactions. ii) Disruption Interim audit may disrupt client operations since the auditor has to be attended to by client staff for information. iii) Alteration of entries Client staff may alter already audited
i) Right to access books of account and vouchers of the business at all times. ii) Right to call for information and explanation which he/she considers necessary for purpose of forming an opinion. iii) Right to attend the AGM regardless of whether accounts are a subject of discussion or not. iv) Right to make a
Subject to‘ Qualification This indicates that there are some material matters about which the auditor has reasons to disagree. ii) ‗Except for‘ qualification This indicates that there are some material matters which have quite significant effect and thus the financial statements give untrue information e.g. where no provision is made for doubtful debts. iii) ‗Adverse‘
i) Proper Planning This will solve the problem of disruption since with proper communication between the directors and auditors, the audit process should not take much time. ii) Use of Journal Entries Alteration of entries should be done using journal entries which should then be listed for the auditor‘s attention. iii) Noting down questions Notes
– The working papers should have a good index to facilitate referencing and cross- referencing. – They should be as complete as possible. The working papers should include the auditor‘s reasoning on all significant matters which require the exercise of judgement, together with the auditor conclusion thereon. A competent auditor reviewing the papers should arrive
CAATs are procedures which are performed through a computer. The audit approach thus shifts from conventional to the use of computer system. Use of CAATs is governed by ISA 1009 and describes two of the main types of CAATs as: 1) Audit Software 2) Test Data