Audit framework and regulation

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What is the difference between audit and compliance?

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

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What are 3 types of audit?

The audit is an independent examination of information to provide assurance on the information or examined the subject matter.

There are 3 types of audits.

Historical financial statements audit. This audit involves an independent examination of the entity’s financial statement in order to issue an opinion on its truth and fairness.

Compliance audit. This type … Read the rest

Why is absolute assurance in auditing impossible?

Characteristics of professional skepticism

Professional skepticism is a state of mind where auditor question and collect sufficient and appropriate audit evidence before accepting client management assertion or explanation. Professional skepticism help auditor reduce audit risk and hence issue an opinion which will increase the credibility of financial statements.

The following are characteristics of professional skepticism

  • Questioning of management explanation:
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Revision question on code of ethics NBAA May 2019.

Dibal Associate, an audit and assurance firm, has been engaged as auditors for the M & B Bank Ltd, a public limited liability Company for some time now. M & B Bank has sixty branches throughout the country including branches in Dodoma, Mwanza, Tanga and Zanzibar. The Bank is one of the banks in the country which can boast of … Read the rest

Break-even point - meaning and formula

Objectives of a reasonable assurance engagement.

The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement as the basis for a positive form of expression of the practitioner’s conclusion.

In a reasonable assurance engagement, the practitioner:

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5 Key factors that should be considered when establishing the overall audit strategy.

Audit strategy generally means the combination of audit approach to be used, resources management and allocation, timing of the audit and the way how the audit engagement is managed. For example, the auditor will use risks based audit approach or top-down approach to conduct audit assignment.

In establishing the overall audit strategy, the auditor shall consider the following key factors:

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