Audit is an independent examination of business financial statements so as to issue opinion on whether the financial statement are prepared in accordance with acceptable financial reporting framework and show true performance and position of the business. Audit is conducted according to the requirements of countries laws and regulations and international standard on auditing. The auditor when conducting audit aim … Read the rest
Going concern means that the enterprise will continue in operational existence for the foreseeable future without the intention or necessity of liquidation or otherwise ceasing trade. It is one of fundamental accounting concepts used by auditors and is stated in IAS 1 presentation of financial statements.
The auditors responsibilities in respect of going concern is explained in ISA 570 going … Read the rest
Asset is resource controlled by an entity as the results of past events and from which future economic benefits are expected to flow to the entity. A non current asset is the asset that is unlikely to turn into unrestricted cash within one year of statement of financial position date.
The following substantive procedures should be applied for verification of… Read the rest
Audit documentation is the written record of the basis for the auditor’s conclusions that provides the support for the auditor’s representations, whether those representations are contained in the auditor’s report or otherwise.
The following are benefits of computer based audit working papers:
- Preparation of working papers using computer becomes speedy and less costly;
- It is
Audit working papers are documents which record all audit evidence obtained during financial auditing. Guidelines on how how to prepare and maintain working papers is given by ISA 230 Audit documentation. auditor is required to prepare on timely basis audit documentations that provide:
- a sufficient appropriate record of the basis for the auditors report, and
- the evidence that the audit
The objective of a limited assurance engagement is a reduction in assurance engagement risk to a level that is
acceptable in the circumstances of the engagement, but where that risk is greater than for a reasonable
Assurance engagement, as the basis for a negative form of expression of the practitioner’s conclusion.
In a limited assurance engagement, the practitioner:
gathers sufficient … Read the rest
(a) In accordance with ISA 501: Audit Evidence – Specific Considerations for Selected Items, outline what an auditor should do: