Internal Controls in a Computerized Information System COMPUTERIZED INFORMATION SYSTEMS Notes INTRODUCTION At the end of every financial year, company’s are expected by statute to have their financial statements reviewed by an independent professional who after going through the accounts, expresses an opinion as to whether the financial statements present a true and fair view … Read more

Internal Controls in a Computerized Information System COMPUTERIZED INFORMATION SYSTEMS Notes QUIZ These consist of computer programs used by an auditor to read magnetic files and to extract specified information from the files. QUESTION ONE A medium size firm which has been your client for several years has changed from manual accounting system to a … Read more

SUBSTANTIVE TESTING Notes FRAUD & ERROR (iSA 240) Notes Internal Controls in a Computerized Information System To mitigate the risks occasioned by the features of a computerized information system, the management should design internal controls over the system. These controls are mainly classified into general controls and application controls. 1. General controls of Computerized Information … Read more

Audit Recording (iSA 230-Documentation) AUDIT QUALITY CONTROL INTRODUCTION in the business environment today and in today’s world, there has been an irreversible push for companies to automate their systems and their way of doing business so a to be competitive. The push for companies to embrace the new technological changes has come with new challenges … Read more

THE AUDITOR AND THE COMPANIES ACT-Questions and Answers Audit Test Questions and Answers QUIZ h. A Signature in the name of the audit firm and location of the auditor i.e office QUESTiON ONE Going concern concept is a fundamental assumption underlying the preparation of the financial statements. What are the procedures you would perform to … Read more

SUBSTANTIVE TESTING Notes Part 2 THE AUDITOR AND THE COMPANIES ACT-Principles of Good Corporate Governance INTRODUCTION Once the auditor has gathered sufficient appropriate audit evidence on which to base his opinion, he is expected to put his findings on the true and fairness of the financial statements in a report. This report is referred to … Read more

THE AUDITOR AND THE COMPANIES ACT-Introduction Audit Test Questions and Answers FRAUD & ERROR (iSA 240) Questions and Answers QUIZ letter QUESTION ONE Your firm has been approached by the directors of UB Bank Ltd. a newly formed commercial bank to undertake the audit for its first complete financial year ended 31 December 1996. Your … Read more

THE AUDITOR AND THE COMPANIES ACT-Introduction SUBSTANTIVE TESTING Notes Principles of Good Corporate Governance There are a number of principles essential for good corporate governance practices. The following have been identified as representative of critical foundations and virtues of good corporate governance practices. a.  Directors. Every company should be headed by an effective board of … Read more

FRAUD & ERROR (iSA 240) Notes FRAUD & ERROR (iSA 240) Questions and Answers KEY TERMS Engagement Letter before commencement of the audit, the auditor and the client should agree on the terms of the engagement. The agreed terms should be recorded in an audit engagement letter or other suitable form of contract. Professional Ethics … Read more

SUBSTANTIVE TESTING Notes AUDIT SAMPLING Questions and Answers AUDIT PLANNING, CONTROL & RECORDING Revision Questions and Answers QUESTION ONE Tasty ice cream employs thirty salesmen each with defined geographical area coverage. Each salesperson is supplied with a car which is changed every three years. at end of each week, each salesperson is submits claim on … Read more

Management Assertions Financial statement assertions are assertions by management, explicit or otherwise that are embodied in the financial statements. They are categorized as follows:• Existence• rights and obligations• occurrence• Completeness• valuation• measurement• presentation and disclosure The auditor must determine which financial statement assertions are relevant to each account balance and formulate appropriate audit procedures to … Read more

AUDIT PLANNING, CONTROL & RECORDING (iSA 300) NOTES What is SUBSTANTIVE TESTING? Substantive tests are those tests carried out by auditors to confirm the assertions of the management. These assertions include: existence, rights and obligations, occurrence, completeness, valuation, measurement and presentations and disclosure. They are tests to detect material misstatements in the financial statements. DEFINITION … Read more

Audit Evidence Revision Questions and Answers AUDIT PLANNING, CONTROL & RECORDING Revision Questions and Answers QUIZ  Fraud this refers to intentional misrepresentation of financial information by one more individuals among management, employees or third parties. physical Controls QUESTION ONE Fraud and error present risks to an entity. Both internal and external auditors are required to … Read more

AUDIT SAMPLING (iSA 530) Notes INTRODUCTION When the auditor is carrying out his work, he comes across deviations or misstatements in the financial statements. These misstatements may be due to an unintentional error or one that was committed with intent thus. The misstatements may also be due to non compliance with laws and regulations or … Read more

AUDIT SAMPLING (iSA 530) Notes QUESTION ONE QUESTION TWO in the context of iSa 530 (audit Sampling and other means of Testing), explain and provide examples of the terms ‘sampling risk’ and ‘non-sampling’ risk. Briefly explain how sampling and non-sampling risk can be controlled by the audit firm. QUESTION THREE Tam Co is owned and … Read more

AUDIT SAMPLING Questions and Answers What is Audit Sampling? Application audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor obtain and evaluate audit evidence about some characteristics of the items selected in order to form or amidst in forming a confusion concerning the … Read more

Get Notes on : AUDIT PLANNING, CONTROL & RECORDING (iSA 300) NOTES AUDIT QUALITY CONTROL Audit Recording QUESTION ONE audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensures an effective control and review of audit work. Required; QUESTION TWO You are an audit senior responsible for understanding … Read more

Audit Recording (iSA 230-Documentation) AUDIT PLANNING, CONTROL & RECORDING Revision Questions and Answers AUDIT PLANNING, CONTROL & RECORDING (iSA 300) NOTES Audit Recording (iSA 230-Documentation) The auditor must record or document all the information gathered as audit evidence in forming an opinion on the financial statements. The evidence is recorded in the form of working … Read more

Read Also: AUDIT PLANNING, CONTROL & RECORDING (iSA 300) NOTES AUDIT PLANNING, CONTROL & RECORDING Revision Questions and Answers Accounting and Internal Systems (iSA 400)Questions and Answers Audit Quality Control (iSA 220) The quality of the work carried out by the auditor is of fundamental importance. This is especially so in the light of potential … Read more

FIND ALSO AUDIT EVIDENCE (ISA 500) Notes WHAT IS AUDIT PLANNING? ISA 300 Planning an Audit of Financial Statements: planning refers to developing a general strategy and a detailed approach for expected nature, timing and extent of the audit. The auditor should plan his work to enable him conduct an effective audit in an efficient … Read more