George Mariyajohnson
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Highers Accounting and Finance (Year 2) (Audit & Assurance) Quiz sobre Lecture 4- The audit process- offsite work (2), criado por George Mariyajohnson em 04-02-2021.

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George Mariyajohnson
Criado por George Mariyajohnson mais de 3 anos atrás
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Lecture 4- The audit process- offsite work (2)

Questão 1 de 25

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Second stage of audit process is

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Questão 2 de 25

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When planning audit, minimising should be thought about. When looking at minimising some things need to be thought about such as work (work that happens auditor gets into appointment), work (think about work so understand , work & audit procedures)

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Questão 3 de 25

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In pre-engagement process, firstly determine whether entity fits their profile before engagement. Also, auditors need to consider of audit firm & ability to perform work for . If not happy do not , if happy send an

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Questão 4 de 25

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In post engagement process, need to understand & its . Therefore, they need to build up understanding of what does, go into more understanding of & think about controls. Going through this process helps plan their work to minimise risk

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Questão 5 de 25

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To build up understanding, need to meet members of , meet members of , meet head of & perform procedures. By meeting these individuals & getting an understanding, it helps see key issues or areas they want to on in entity

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Questão 6 de 25

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To build up more understanding, need to think about or sector entity operates in & related , impact of on industry, public interest entity, growing or declining entity, of entity & how them, financing/gearing, of its transactions, subsidiaries/associated companies/investments & & of tenure of management/employees. This information would be included in audit planning

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Questão 7 de 25

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In looking at control of entity, need to think about entity’s control , entity’s process, entity’s system, of audit committee & audit function (if they have one) & control relevant to audit. This would be included in audit planning

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Questão 8 de 25

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When considering who should form engagement team you need to consider , , & use of

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Questão 9 de 25

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Auditors need to think about detailed audit programmes. There will be emphasis on to rely on controls (make sure controls are working ), distinction between & systems & think about level of testing (related to how much testing needs to be completed)

Explicação

Questão 10 de 25

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In relation to testing controls, auditors intend to rely on their to reduce risk of at assertion level. So auditors have detailed procedures that will not provide evidence alone at assertion level. Therefore, auditors may need to do work on they have done

Explicação

Questão 11 de 25

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Substantive procedures include reviews (i.e. comparing from this year & last year), tests of transactions or balances & confirmations (could be through bank letter, suppliers, etc so getting that is to client)

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Questão 12 de 25

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Professional scepticism is an that includes mind, being to conditions which may indicate possible due to error or fraud & critical of audit evidence

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Questão 13 de 25

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In relation to professional scepticism, auditor must be alert to audit evidence that other audit evidence , information that brings into question of documents & to inquiries to be used as audit evidence, conditions that indicate possible & circumstances that suggest need for audit in addition to those required by ISAs

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Questão 14 de 25

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Professional judgement is application of relevant , & in making informed about courses of action that are appropriate in of audit engagement

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Questão 15 de 25

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Judgement can become area for auditors as will usually include significant level of such as of long term contracts & judgement about values

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Questão 16 de 25

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Auditors can approach areas of judgement by evaluating management & , looking at & in place to help decision making process, ensuring that are soundly based & considering use of

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Questão 17 de 25

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Materiality for financial statements as & materiality must be calculated at stages of all audits. Calculation or estimation of materiality should be based on & . Materiality for financial statements must be reviewed throughout & if necessary

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Questão 18 de 25

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Materiality- Relative or of particular matter in context of financial statements as . Matter is material if its or would reasonably decisions of user of financial statements

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Questão 19 de 25

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With materiality, there are certain or used by auditors

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Questão 20 de 25

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Performance materiality- Amount set by at less than for financial statements as whole to reduce to an appropriately level probability that of uncorrected & undetected misstatements exceeds for financial statements as whole

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Questão 21 de 25

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Materiality during audit may if there are changes to accounts & during audit testing that there are they need to be adjusted

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Questão 22 de 25

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Materiality at evaluation stage there is of effect of any , estimation of potential in components of financial statements & in financial statements taken as , auditors will consider nature of & decides whether to adjust

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Questão 23 de 25

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Materiality at evaluation stage, in evaluating misstatements auditors need to consider & , whether errors exhibit , whether errors relate to matters or matters of , whether errors relate to matters, whether there is suspicion of , whether similar errors were discovered in year & whether misstatements affect only items or account too

Explicação

Questão 24 de 25

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issues need to be considered as auditors need to think about whether is required to be , whether accounting policies are disclosed & where there is classification

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Questão 25 de 25

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Internal controls ensure businesses operate . need to rely on it because it is good way of their testing (don't need to test many )

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