Académique Documents
Professionnel Documents
Culture Documents
10
8
4
3
3. What tests of control might be appropriate for Sales day book and Receivables ledger
10
4. Sales invoices are source documents that provide a record for each sale. For control purposes, sales
invoices are sequentially pre-numbered.
a. What are the control objectives to mitigate risk of not receiving payments from a sales invoice?
b. Which tests of control do you think appropriate for sales day book and suggest some controls to
safeguard cash in hand and at bank?
5. A key issue for accountants is that there are limitations to assurance services, and therefore there is always
a risk involved that the wrong conclusion will be drawn. What are the limitations of assurance services?
6. Section 220 of Code of Ethics says that the principles of objectivity impose an obligation on all
professional accountants not to compromise their professional or business judgment because of
biasness, conflict of interest or the undue influence of others.
a. What should a professional accountant do where there is a conflict of interest and what
safeguards are available for a professional accountant in different circumstances?
b. What should the professional accountant do if his request for consent to act for another party
having conflict of interest is refused by the client?
7. The practitioner should comply with the International Framework for Assurance Engagements (the
Framework) and International Standard on Assurance Engagements (ISAE) when performing an
assurance engagement other than an audit or review of historical financial information covered by
International Standards on Auditing (ISAs) or International Standards on Review Engagement (ISREs).
a. What are the factors a practitioner must consider before accepting an assurance engagement and
what are low risks and high risks for assurance?
c. What are the purposes of an engagement letter? Should a practitioner send an engagement letter to
existing clients?
7
10
7
3
10
5
8. An accountant evaluates financial records based on assertions imbedded in the financial statements.
a. What are the management assertions under different categories?
b. What is the `expectation gap in assurance engagement?
4
6
9. What are the general sources of threat identified by the IFAC Code? Give one example against each source?
10
The End