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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
One of the responsibilities of the directors of a company is to establish strong internal controls to safeguard the assets of the firm. Required: Set out the audit procedures you would follow to verify directors‘ fees
What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: State what action you would take if the directors refused to provide you with a letter of representation
Explain the computer assisted audit techniques listed below: Embedded audit facilities and Integrated test facilities
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
Potential users of audited financial statements and their specific needs
List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: Draft a paragraph for a letter of representation appropriate to the circumstances described above
Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item. Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number First four letters of nominal account name (entered on invoice by purchase department manager) Nominal account code (entered by purchase department manager) Date Goods inward note number Net amount VAT amount Gross amount Required: Suggest input controls that might be applied by the program to these items