Audit main questions

1-list the significant deficiency in different systems e.g. sales , purchase, wages, payroll

2-for each deficiency explain why it is a deficiency and state how it can be overcome

3-list and explain the responsibilities of both manager and auditors with regard to the prevention
and detection of fraud.

Explain what is meant by the following terms:

• audit risk
• inherent risk
• control risk
• detection risk

4-list and explain the duties of the auditors.

5-discuss the relationship between auditors and directors of a limited company.

6-state the legal rights of an auditor of a a limited company.

7-discuss whether the directors have the authority to dismiss auditors.

8-explain the steps you would take prior to accepting the appointment as auditor to a company.

9-list six substantive audit procedures that can an auditor would normally carry out on the non
current assets system and explain the reason for each procedures

10-state the aim of a test of control and substantive procedures.

11-state four test of control in respect of non current assets.

12-identify and explain the purpose of typical engagement letter.

13-identify and explain the typical matters to be communicated as disclosed in ISA 260.

14-state what is meant by term 'materiality' and discuss how this affect an aidit od historical
financial information.

15- explain what is meant by term 'value for money' indicators and discuss how these can be used in
the audit of a not for profit organisation.

16-discuss the differences between reasonable and limited assurance.

17-identify and explain the responsibilities of auditors and management in relation to the design and
operation of internal control system.

18- identify and explain the main roles and responsibilities of an audit committee

19- the expecting gsp is the possible difference between an auditor's actual responsibilities and
those assumed by reader of an audit report. Identify and explain the main misunderstandings made
by users of financial statements in respect of the audithors' responsibilities.

20- explain the benefits of using computer assisted audit techniques to help the auditor to obtain
sufficient appropriate audit evidence.

21- six audit procedures that may be performed on wages system using audit software.

22- explain test data may assist the audit of wages system and discuss the limitations.

23-define the following concepts and explain the relation between them in the context of audit of
financial statement.
• Materiality ,and
• fair presentation9mtrue and fair view)

24-in accordance with ISA 706 audit reports may be modify to reflect matters that have no bearing
on their opinion. Discuss the circumstances under which such modification are made and the nature
of the additional paragraph that may be included in the audit report.
Contrast the nature of the assurance offered in a review engagement in comparison to an audit of
financial statements.

25-identify and explain four factors that indicate increased fraud risk in a business.

26- explain and identify the elements of the entity and its environment that the auditors should seek
to understand.

27- draft notes typical contents of an engagement letter and explain their purposes.

28- recommend the substantive analytical procedures that could be performed as part of the final
audit.