ADVANCED AUDITING AND ASSURANCE REVISION KIT

To get complete copy of ADVANCED AUDITING AND ASSURANCE revision kit, Buy a copy using Masomo Msingi Publishers app which is in Playstore or order hard copy through 0728 776 317 or e-mail info@masomomsingi.co.ke

 

AAA Sample

TOPIC 1

 

ASSURANCE AND NON-ASSURANCE ENGAGEMENTS

 

 QUESTION 1

November 2018 Question Four B

Discuss the objective of a review engagement contrasting the level of assurance provided with that of an audit of financial statements.                                                       (4 marks)

 

QUESTION 2

May 2018 Question Two B

Contrast the scope of due diligence investigations with that of an audit of financial statements.                                                                                                            (6 marks)

 

QUESTION 3

December 2017 Question Two A

The framework for assurance engagements does not permit an auditor to give an absolute level of assurance.

 

With reference to the above statement, suggest five reasons why it is not possible to give an absolute level of assurance.                                                                            (10 marks)

 

QUESTION 4

September 2015 Question One A

Your audit firm has tendered for the audit of Hekima Group of Companies.

 

Required:

Evaluate six matters that should be considered before accepting the audit engagement in the event your firm is successful in the tender.

 

SUGGESTED ANSWERS

TOPIC 1

 

ASSURANCE AND NON-ASSURANCE ENGAGEMENT

 

 

QUESTION 1

November 2018 Question Four B

 

Objective of a review engagement contrasting the level of assurance provided with that of an audit of financial statement.

 

Review engagement Statutory Audit
1.It provides limited assurance 1.   It provides reasonable assurance
2.The practitioners opinion in a review engagement is expressed in a negative form 2.   The auditor opinion is expressed in positive form
3.The level of engagement risk is higher 3.   The level of engagement risk is lower
4.It is voluntary 4.   it is a legal requirement

 

QUESTION 2

May 2018 Question Two B

 

Scope of due diligence investigations with that of an audit of financial statements

 

Due diligence investigation Audit of financial statement
–      The scope of work is determined the buyer –       The scope of work is determined ISAS
–       Carried accountants experienced in such assignment –       Carried an independent auditor
–       Covers the last several years –       Typically covers the result for the year under audit

 

To get complete copy of ADVANCED AUDITING AND ASSURANCE revision kit, Buy a copy using Masomo Msingi Publishers app which is in Playstore or order hard copy through 0728 776 317 or e-mail info@masomomsingi.co.ke

QUESTION 3

December 2017 Question Two A

Reasons why it is not possible to give absolute level of assurance

  1. Use of judgement in gathering and evaluating evidence– there is a room of more than one possible interpretation of requirements.
  2. Use of selective testing– Sampling procedures affect the evidence collected as audit procedures are applied only to a small population instead of checking each and every item thus affecting the level of assurance
  3. Inherit limitations of the internal controls – if internal control are weak, the auditor will do extensive substantive which may affect the level of assurance
  4. Much of the evidence available to the practitioner is more persuasive than conclusive. The is basing on what is probable and not what is exact.
  5. Possibility of collusion – The evidence may not be sufficient and appropriate enough since the management may collude with the

To get complete copy of ADVANCED AUDITING AND ASSURANCE revision kit, Buy a copy using Masomo Msingi Publishers app which is in Playstore or order hard copy through 0728 776 317 or e-mail info@masomomsingi.co.ke

 

(Visited 12 times, 1 visits today)
Share this:

Written by