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Question 1

MILTON MARGAI TECHNICAL UNIVERSITY

CONGO CROSS CAMPUS

ADVANCED AUDIT AND ASSURANCE

B.Sc. ACCOUNTING AND FINANCE YEAR 4

TEST

SECOND SEMESTER 2023/2024

ANSWER ANY TWO QUESTIONS

a. By approving the financial statements, the directors are making representations about the information therein. As the team leader of the audit team, state the procedures used to obtain the audit evidence about the financial statement assertions.

b. Identify the factors that influence an auditor's judgment as to what is sufficient appropriate evidence.

Question 2

a. Enumerate and explain the issues that an analytical review may focus on.

b. Identify enquiries that may be made of management when reviewing for subsequent events.



Answer :

GinnyAnswer

Final answer:

The detailed answer covers audit evidence procedures, factors influencing auditor judgment, issues analytical reviews focus on, and enquiries made to management.


Explanation:

Question 1:

Audit Evidence Procedures:

  • Observation: Directly viewing assets or processes.
  • Inspection: Examining documentation or records.
  • Confirmation: Obtaining third-party verification.
  • Recalculation: Checking mathematical accuracy.

Factors Influencing Auditor's Judgment: Nature of risk, Materiality, Timeliness, Reliability, and Cost.

Question 2:

Issues Analytical review may focus on: Revenue trends, Expense patterns, Profit margins, and Cash flow ratios.

Enquiries to Management: Changes in business operations, Accounting estimates, and Unusual transactions.


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