Struggling to find an answer. Can anyone help me

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?

Bluewednesday

Hi Loopy

Have you looked at the standard? I think all the answers are contained within it.

loopy lou

sorry when you say standard what do you mean?

Jo Clark

I think Bluewednesday means look at International Auditing Standard 260. I've not covered this area yet so may be wrong but I think that the IAS should provide guidance to help you answer your question.

Jo Clark

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

Not sure if this will help or not....


JC