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AUDIT PLANNING – ISA 300 Audit planning involves establishing the overall audit strategy for the engagement and developing an audit plan. The audit strategy sets out the scope, direction, timing and conduct of the audit. Importance/objectives of planning the audit Read more
ISA-310 Obtaining background knowledge about the client and industry Prior to accepting the appointment, the auditor should obtain preliminary knowledge of the entity and its environment. After accepting the appointment, the auditor should gather more detailed information about the entity; Read more
ENGAGEMENT Agreeing on the terms of engagement – (ISA 210) Once an auditor is nominated he has a choice of either accepting or rejecting the appointment. Matters to consider and procedures to perform before accepting an appointment 1) Consider whether Read more
LEARNING OBJECTIVES Understand the internal controls over custody of cash. Design and perform audit tests of cash and bank balances. Recognize the possible fraud and errors of cash and bank balances. Recognize the extended audit procedures of the general cash Read more
You are the audit senior responsible for the audit of Sampson Limited (“Sampson”). You are currently planning the audit for the year ended 31 December 20X7. During your initial planning meeting held with the financial controller, he told you of Read more
Answer A limited assurance engagement is an assurance engagement in which the practitioner reduces engagement risk to a level that is acceptable in the circumstances of the engagement but in which the risk is greater than for a reasonable assurance Read more
Answer: Audit Report and Certificate i. The term „report‟ is used where an expression of opinion is involved. The term „certificate‟ is preferable where the auditor comments on or verifies facts ii. The Auditor Report is based on facts, estimates Read more
Answer: An unqualified report, which is otherwise known as unconditional opinion is issued by the auditor when he does not have any reservation with regard to the matters contained in the financial statements. In such a case, the audit report Read more
Answer INDEPENDENT AUDITOR’S REPORT To the Shareholders, ABC Company Report on the Audit of the Financial Statements1 Opinion We have audited the financial statements of ABC Company (the Company), which comprise the statement of financial position as at Ashadh 32, Read more
Answer: After the audit, the opinion that the auditor expresses are the result of exercise of judgement on facts, evidence and circumstances which he comes across in the course of audit. The judgement is formed on the following basis: – Read more