In auditing the financial statements of companies which use computerized accounting systems, the auditors may find that this traditional (audit) trail is often obscured. Various techniques can be used in order to give the auditors greater assurance when the audit trail is lost. Required Outline how audit software can be used by the auditors in order to assist them in carrying out their analytical procedures

The auditors can use audit software for analytical procedures in the following ways:-

i) It can read computer files and extract data, such account balances, agreeing analysis for stock and debtors etc.

ii) If the relevant information is on the computer, the audit software can compare current results to prior year or to budget.

iii) Other computational aspects would be the calculation of days sales in debtors or days purchases in stock and creditors.

iv) The audit software can calculate any amount of variance, trends and ratios. The auditor must still analyse what the software produces which will involve them using professional judgment in analyzing the figures.

Share through

Share to Download

In auditing the financial statements of companies which use computerized accounting systems, the auditors may find that this traditional (audit) trail is often obscured. Various techniques can be used in order to give the auditors greater assurance when the audit trail is lost. Required Explain how the auditors can use analytical procedures in order to give them greater assurance when there is a loss of audit trail
In auditing the financial statements of companies which use computerized accounting systems, the auditors may find that this traditional (audit) trail is often obscured. Various techniques can be used in order to give the auditors greater assurance when the audit trail is lost. Required; Explain why there is a possible loss of audit trail when companies utilize computerized accounting systems and why auditing through the computer assists the auditors in overcoming this loss of audit trail
Define the term audit programme
What is an audit?
List five limitations of an audit
How does audit planning assist in the conduct of an audit?
What is the purpose of an audit report ?
Many auditors now use laptops computers to perform various audit tasks. However, if audit firms use laptop computers they risk data being corrupted and appropriate controls must therefore be put in place to prevent the corruption of data;Explain six ways which auditors can use laptop computers in their audit work (other than computer-assisted audit techniques)
Distinguish between internal audit and internal check
What are computer assisted audit techniques (CAATs)?
Briefly explain the following terms as used in auditing: Vouching audit, Inherent risk, Control risk and in depth audit tests
Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
Define and explain the meaning of an audit programme
Many auditors now use laptops computers to perform various audit tasks. However, if audit firms use laptop computers they risk data being corrupted and appropriate controls must therefore be put in place to prevent the corruption of data; Briefly describe two types of software that might be used by auditors in their work other than Computer Assisted Audit techniques
Distinguish between a procedural audit and a balance sheet audit
Write brief explanatory notes on the following audit terms: Vouching audit;
Many auditors now use laptops computers to perform various audit tasks. However, if audit firms use laptop computers they risk data being corrupted and appropriate controls must therefore be put in place to prevent the corruption of data; describe the controls that auditors should implement when using laptop computers on audits
What is an ―interim audit‖?
List two advantages and two disadvantages of using standardised audit programmes during audit assignments
List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
The auditing guideline on „recording‟ requires audit working papers to be sufficient complete and detailed so that an experienced auditor who has no previous connection with the audit is able to subsequently ascertain from working papers the work performed and to further support the conclusions reached thereon. Required: Outline the contents of a typical: Current audit file; and Permanent audit file
Explain the computer assisted audit techniques listed below: Embedded audit facilities and Integrated test facilities
Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
List six contents of an unqualified audit report
Your audit senior has assigned you the responsibility of auditing the stock of your client, XYZ Supermarket Ltd. for the year ending 31 December 2005.The company‘s stock take is carried out once a year in the month Novembersimultaneously for all the retail outlets.Required:State the audit assurances you would seek to obtain in the audit of stock
What is an audit peer review? and state and briefly explain the objectives of an audit peer review
The National Metal Works Limited manufactures and retails door and window frames. The company recently dismissed their external auditors. The directors have approached your firm of accountants to act as their auditors and the directors have proposed a fee of KShs. 1, 000, 000 plus a bonus of 1% of profits after tax. Required: Explain the implications of fixing the audit fee by negotiation between the directors and the external auditors on the independence of the auditor
Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required:Provide the audit trainees with guidelines on how they should prepare audit working papers
Explain why auditors carry out circularisation of debtors
Explain the reliability of bank statements as audit evidence
Your audit firm, Kimani and Associates has been contracted by the government to audit the procurement system followed by the government. Required; Outline the audit procedures an audit firm should follow in the verification of a manufacturing company‘s liabilities
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: Identify the type of information that the audit trainees should include in the audit working papers
Identify any four contents of an audit engagement letter
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper. ‘Required: Explain the importance of audit working papers
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: List any four advantages of standardized audit working papers
Explain the importance of audit to a limited liability company
List and briefly explain five disadvantages of an interim audit
Outline the basic elements of an unqualified audit report
What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?

KNEC| KASNEB| KISM| Ebooks Kenya

Leave a Reply Cancel reply

Related Posts

Leave a Reply Cancel reply