Question 1
To gather the evidence which is required pertaining to the assertions, the auditor conduct procedures which have been developed and refined to meet the audit objective. The various procedures which will be conducted by the auditor will be mixed but balanced – no single procedure will supply all the evidence needed.
The procedure’s can be described as follows
- inspection
- Observation
- inquiry
- Recalculation
- Analytical procedures
- Reperformance
- external confirmation
YOU ARE REQUIRED To:
a) Explain each of the above procedures
b) ) indicate whether each procedure can be applied as a substantive test, or a test of controls or both.
c)Give one example for each type of test (1 to 7 above). your example can be a
substantive test or a test of controls
d) State whether the above procedures can be used by the auditor when identifying and assessing the risk of material misstatement. explain
e) e) Identify six parties other than the client’s director and employee, from whom the auditor may obtain audit evidence and give an example of what that evidence may .
Total marks 25
1 Answer