In the context of ISA 240 (The Auditor‘s Responsibility to Consider Fraud and Error in, an Audit of Financial Statements): Define: -Fraud and Error

(i) Fraud
This term is used to refer to irregularities involving the use of criminal deception to obtain unjust or illegal advantage. For instance misappropriation of stock by the store-keeper, followed by altering of records.
(ii) Error
This refers to an oversight by a staff in the recording of a transaction, for instance an accountant, whereby an incorrect value for money is entered in the books unintentionally. In this case the intention of obtaining illegal advantage may not be the cause of such an oversight.

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Define the term audit programme
List and briefly explain four objectives of an audit of financial statements
Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements
Outline and explain four ways in which the objectives of an audit of financial statements have changed over the years
Define and explain the meaning of an audit programme
In the context of audit sampling, distinguish between the following terms: Sampling risk and non-sampling risk, Tolerable error and expected error and Audit risk and detection risk
Explain the reliability of bank statements as audit evidence
Potential users of audited financial statements and their specific needs
Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain
List the principal matters, which the auditors considers in forming an opinion on the financial statements
Explain how auditors distinguish their responsibility from those of the directors in respect of financial statements
What are the responsibilities of the directors of a company in relation to a company‘s financial statements?
Identify six basic elements of the auditor‘s report containing an unqualified opinion on the financial statements
What is the purpose of an audit report ?
Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
Define the term capital allowances
Distinguish between a procedural audit and a balance sheet audit
Explain the factors that external auditors should consider in determining whether the financial statements of a limited company show a true and fair view
It is often argued that: ―The external auditor adds credibility to the financial statements produced by a business entity.Briefly comment on this statement
An auditor is required to state whether, in his opinion proper books of account have been kept and whether the financial statements give a true and fair view of the state of the financial affairs of the company being audited. What are the consequences, to the auditor, for giving an unqualified opinion, when he knows that there are material inaccuracies in financial statements
How does audit planning assist in the conduct of an audit?
It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements. Under statutory provision, what are the main contents of the auditors‘ report?
Write brief explanatory notes on the following audit terms: Vouching audit;
What is the form of audit opinion you would give if you concluded that the client company was experiencing going concern problems and:you have established that the financial statements give sufficient disclosure of the going concern problems? And you have established that there is no disclosure of the going concern problems in the financial statements?
Define the term “a cheque”
List five limitations of an audit
It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements; b) Explain how the international standards on auditing attempt to ensure that the report of the auditors is clearly understood
List two advantages and two disadvantages of using standardised audit programmes during audit assignments
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
Explain the computer assisted audit techniques listed below: Embedded audit facilities and Integrated test facilities
In carrying out an audit, the auditor appraises the tests and the system of internal control in order to ascertain that it is capable of processing transactions or determining the quantities and values completely and accurately. The auditorfurther carries out substantive tests in an attempt to ensure that the transactions, assets and liabilities recorded in the accounting records upon which the figures in the financial statements are based, are completely and accurately recorded.Required;List and briefly explain the substantive tests the auditor would carry out to verify the values attributed to: Trade and debtors in a company‘s financial statements and trade creditors in a company‘s financial statements
Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
What are computer assisted audit techniques (CAATs)?
List six contents of an unqualified audit report
What is an audit peer review? and state and briefly explain the objectives of an audit peer review
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
Financial management July 2017 Past Paper – KNEC Diploma
Financial Accounting November 2016 Past Paper – KNEC Certificate
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

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In the context of ISA 240 (The Auditor‘s Responsibility to Consider Fraud and Error in, an Audit of Financial Statements): Define: -Fraud and Error

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