The form and content of the audit engagement letter may vary for each company. Write a sample audit engagement letter and highlight the key areas
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Course Name: Auditing (Accounting)
Write a concise answer between 500 to 550 words for each question.
3. The form and content of the audit engagement letter may vary for each company. Write a sample audit engagement letter and highlight the key areas .
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- Course Name: Auditing (Accounting) Write a concise answer between 350 to 400 words for each question. a) The purpose of an audit is to enhance the degree of confidence of interested users in the financial statements. How can you achieve this purpose? Explain. b) “Sufficiency of audit evidence and appropriateness of audit evidence are essential for arriving at the conclusions on which the auditor’s opinion is based.” Elaborate the statement.What are key audit matters? How do these affect the format of the audit report? maximum 200 words)b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15…Course Name: Auditing (Accounting) Write a concise answer between 350 to 400 words for each question. a) The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Do you agree? Why or why not? Justify your answer. b) Communicating significant risks identified by the auditor helps those charged with governance understand those matters and why they require special audit consideration. Which matters should be communicated regarding identified significant risks?
- Write note on “Relationship between corporate governance & auditing”. please explain in your words a minimum 2 pages of word document size.Briefly explain in not more than 600 words the concept of auditing paying attention to key areas of an audit engagement.John Josephs an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the following. Required: A) List and describe the various phases of an audit. B) Describe how audit procedures designed for one purpose might provide evidence for other purposes. Give an example. C) One of the phases involves understanding an entity's internal control. Why might the members of the association be particulary interested in the work conducted by auditors in this phase of the audit?
- The following are various activities an auditor doesduring audit planning.1. Determine the likely users of the financial statements.2. Identify whether any specialists are required for the engagement.3. Send an engagement letter to the client.4. Tour the client’s plant and offices.5. Compare key ratios for the company to those for industry competitors.6. Review management’s risk management controls and procedures.7. Review accounting principles unique to the client’s industry.8. Identify potential related parties that may require disclosure.For each procedure, indicate which of the first four parts of audit planning the procedureprimarily relates to: (1) accept client and perform initial audit planning; (2) understandthe client’s business and industry; (3) assess client business risk; (4) perform preliminaryanalytical procedures.Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. Identify which of the following is related to their audit process. Identifying the risk Conduct interviews Create audit procedure and plan Discussing corrective action plancreate a fictional audit company and client. Prepare an Audit engagement letter for your fictional client. The engagement letter must be a typed document and at least one page in length. While some paragraphs are standard and can be taken from the auditing standards,
- Ryan is an audit manager in a reputed tax and audit firm. He is incharge of the firm's engagement's objectives, scope, action plans and audit recommendations. He has to release the final audit results for the financialyear along with the internal auditor's options/ results. Which approach will best help him to furnish the details? A) Using external source and process reports B) Using assignment and feedback charts C) Using visualization and interactive reports D) Using accounts payable and receivable reportsDescribe how data analytics can be used during an external audit of a company's financial statements. Be specific and provide 4 examples?You are auditing a client that supplies electrical products to retail stores and electrical contractors throughout the country.The client keeps its accounts receivable records on a computer system, which is updated at the end of each business day.You plan to audit accounts receivable balance as at the end of the financial year, and you have a generalised audit software (GAS) package available to help in this task.Required:Identify ten (10) substantive audit procedures that you could perform using generalised audit software (GAS) in relation to auditing the accounts receivable account.
