Meaning of the phrase “the auditor must be seen to be independent both in fact and appearance”

The phase “the auditor must be seen to be independent both in fact andappearance” Independent in fact – This is the state of mind that permits the provision of an opinion without being affected influence that compromise professionaljudgment, allowing individual to act with integrity and exercise objective and professional skepticism. Independence in appearance – This …

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6 advantages of independent audit

Advantage of independent audit Independent audits are important for inspiring and maintaining users trust because they demonstrate that the organisation is committed to financial transparency and accountability. It helps the management in detection errors and frauds It helps the management in obtaining loans from banks and other financial institutions as the audited statements are relied …

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Ways in which businesses could protect the environment and promote human health in the workplace

Ways in which businesses could protect the environment and promote human health in the workplace Laws and regulations should be adhered to so that profits are not generated at the expense of the environment. Pollution and other environmental issues should always be considered in all business activities, e.g. safe disposal of waste/dumping of toxic waste, …

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Contribution of the production function to the success of a business or quality indicators

Contribution of the production function to the success of a business/quality indicators Provide high quality services/products according to specifications. The production/operating processes of a business should be done correctly through proper production planning and control. Products and services should be produced at the lowest possible cost to allow for profit maximisation. Businesses should clearly communicate …

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meaning and examples of insurable and non-insurable risks

Meaning of insurable risks These risks are insured by insurance companies. Insurance companies decide on the likelihood of an event and then decide if they want to insure the risk Meaning of non-insurable risks These risks are not insured by insurance companies as insurance cost/risks are too high/remains the responsibility of the business. The insurance …

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Ways in which a business can create an environment that stimulates OR promote creative thinking

Ways in which a business can create an environment that stimulates/promote creative thinking Emphasise the importance of creative thinking to ensure that all staff know that management want to hear their ideas. Encourage staff to come up with new ideas/opinions/solutions. Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/ generate more ideas/build …

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Importance of the bank letter and the procedures used to obtain confirmation from the bank

The bank letter is important because it is independent confirmation of anumbers of significant matters in the client’s financial statements. Itconfirms cash and bank balances which may well be a significant asset.It also provides confirmation of customers’ assets held as security,customers’ other assets held (as custodian) and contingent liabilities. The following are the procedures used …

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“Prospective Financial Information (PFI – MEANING

ISAE 3400 defines PFI as financial information based on:-Assumptions about events that may occur in the future; and-Possible actions by an entity. Prospective financial information can be in the form of a forecast, aprojection or a combination of both. A forecast is defined by ISAE 3400 as PFI prepared on the basis of assumptions about …

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meaning of materiality and determine how the level of materiality is assessed

ISA 320 Audit Materiality is one of the international standards on Auditing. It serves to expect the auditor to establish an acceptable materiality level in designing the audit plan. Materiality is the amount by which the financial statement must change in order to change the decisions made by users of the financial statement Materiality in …

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