Give four examples of internal audit work that may e used by the external auditor

Examples of internal audit work that can be used by the external auditor includes:

1. The physical verification of assets. The internal auditor could undertake a physical verification of assets to confirm their existence; the results of such work could be relied upon by the external auditor.
2. To undertake on behalf of the external auditor to observe the stock take exercise, cash counts, and
attendance at wage payments.

3. Point out areas where there have been fundamental changes in accounting, management and internal control system all of which could have an impact on the audit approach;
4. The internal auditor could also perform some substantive procedures on behalf of the external auditor such as evaluating the recoverability of debtors balances

Share through

Share to Download

State the factors that the external auditor should consider before placing reliance on the work of the internal auditor
Distinguish between internal audit and internal check
Outline and briefly explain the procedures that the internal auditor can conduct on behalf of the external auditor
The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: State the extent to which you, as an external auditor, can rely on the work of the internal audit function
You have recently been appointed as the external auditor of XYZ Ltd. Explain the stages you would in the conduct of your audit
Explain the matters you would consider and the work you would perform to enable you assess the extent to which you would rely on the work of the internal audit department of your client
The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: List and explain the criteria which you would consider before deciding to rely on the work of the internal audit function
Explain the purpose of an internal control questionnaire to an auditor
Explain the value derived from the work of external auditors
Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor Required;List four benefits that the auditor would obtain from working papers that meet the above requirements
What are the similarities and differences between internal and external audits?
Write brief explanatory notes on the following audit terms:Internal check;
Identify and explain the functions of the internal audit department in an organization
What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?
Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets
Briefly explain the methods which an auditor might use to ascertain a client‘s internal control system
The auditor should obtain sufficient and appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Identify and briefly explain any three procedures for obtaining audit evidence
Why is an external audit necessary for companies registered under the Companies Act ?
The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: List and briefly describe the duties you would expect the internal audit staff to perform
Explain the following controlling procedures in a well planned audit: Direction and supervision of work, Review and co-ordinating of work and Quality controls
Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor. Required; For each of the situations listed below, one form of audit evidence which is relevant and explain in each case whether that form of evidence is reliable and sufficient:- A trade debtor shown in the balance sheet, A batch of work-in-progress on the shop floor at the year end and A contingent liability disclosed in the notes to the accounts
Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements
The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: What factors would influence the auditor to accept third party certificates as audit evidence?
Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain
In order to conduct an audit effectively and efficiently, an auditor should properly plan for the assignment Explain the matters that an auditor should take into account at the planning stage of an audit exercise Outline the ways in which an auditor acquires knowledge about the client‘s business and industry
The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: What factors would influence the judgment of the auditor with regard to sufficiency of audit evidence?
One of the responsibilities of the directors of a company is to establish strong internal controls to safeguard the assets of the firm.Required:State the audit objectives of internal controls on fixed assets
The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit. Required: In the audit or purchases, list four examples of the type of information that would be contained in the detailed audit working papers
You are the auditor of Bei Nafuu Supermarkets Limited across the country. The management has informed you that they intend to set up an internal audit function. Required: Explain how the quality of the internal audit department of Bei Nafuu Supermarkets Limited can be assessed
Audit working papers should always be sufficiently complete and detailed to enable an auditor with no previous connection with the audit to subsequently ascertain from them what work was performed and to support the conclusions reached by the auditor . Required; Briefly explain giving two examples, the quality of audit evidence generated by third parties
Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
A very important aspect of the audit of the financial statements by an external auditor is the observation of the physical stocktaking. Required: Explain the audit tests that the auditor would apply to establish the physical qualities of stock and their ownership
It is often argued that: ―The external auditor adds credibility to the financial statements produced by a business entity.Briefly comment on this statement
The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit..Required; State four benefits that an auditor would obtain from working papers that satisfy the above requirement
You are the auditor of Bei Nafuu Supermarkets Limited across the country. The management has informed you that they intend to set up an internal audit function. Required: Identify and explain the function to be performed by the internal audit department in Bei Nafuu Supermarkets Limited
Distinguish between a procedural audit and a balance sheet audit
Define the term audit programme
You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?
Identify and explain four factors that would influence the size of a sample selected by an external auditor to enable him carry out a compliance test
The auditor‘s operational standard states, ―The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon‖. Required: State the important factors that must be considered when assessing the reliability of audit evidence

KNEC| KASNEB| KISM| Ebooks Kenya

Give four examples of internal audit work that may e used by the external auditor

Leave a Reply Cancel reply

Related Posts

Leave a Reply Cancel reply