Help - Audit questions

loopy lou

Can anyone help or point me in the right direction in answering the following questions from an old unit 17 simulation.

1. International Auditing Standards 260 'communication of audit matters with those charged with governance'.

a) Give two reasons why auditors should be in communication with the management?

b) What two things should be communicated by the auditor?

2. meeting woth management regarding Control proceedures surrounding the use of computers in a company.

A) Set out steps to take in arranging the meeting?

b) give three key questions regarding the use of computers you would ask?


3. Creditors recorded incorrectly. These errors have been extrapolated to £37450. The materiality level is £112000 and the tolerable level is £52800.

a) What are you to do next and why?

sdv

loopy lou wrote: »

Can anyone help or point me in the right direction in answering the following questions from an old unit 17 simulation.

1. International Auditing Standards 260 'communication of audit matters with those charged with governance'.

a) Give two reasons why auditors should be in communication with the management?

b) What two things should be communicated by the auditor?

2. meeting woth management regarding Control proceedures surrounding the use of computers in a company.

A) Set out steps to take in arranging the meeting?

b) give three key questions regarding the use of computers you would ask?


3. Creditors recorded incorrectly. These errors have been extrapolated to £37450. The materiality level is £112000 and the tolerable level is £52800.

a) What are you to do next and why?

try these links

http://www.cpaireland.ie/UserFiles/File/Technical%20Resources/Auditing/International%20Standards%20on%20Auditing/ISA%20260%281%29.pdf

http://www.accaglobal.com/general/activities/policy_papers/archive_v2/subject/auditing/2378550

http://web.ifac.org/download/a014-2010-iaasb-handbook-isa-260.pdf

sdv

1. International Auditing Standards 260 'communication of audit matters with those charged with governance'.

a) Give two reasons why auditors should be in communication with the management?


1) the auditors need to coomunicate with the management to obtain the required necessary information for audit purposes (para 4 b)

2) those charged with the governance, helped to fulfill their legal and contrcatual responsibilities



b) What two things should be communicated by the auditor?

1) lack of control in secruing company's assets
2) breaches of any IAS


2. meeting woth management regarding Control proceedures surrounding the use of computers in a company.

A) Set out steps to take in arranging the meeting?

forms of communication - writing, e-mail, verbal
Timing -





b) give three key questions regarding the use of computers you would ask?

1) data back ups - how when by whom
2) back ups stored off site
3) authority to access the information (use of passwords)