Accounting Explain five actions the audit firm would take as part of the client screening process, excluding professional clearance, before accepting the company's audit Your answer
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- Instructions Rubric Instructions In not less than five sentences, choose ONE FS item and explain what kind of audit procedure the auditor should do to address its corresponding FS assertion.25 As the process of auditing is involves many stages as per ISA, the auditor after setting up a closing meeting submits the final audit report to ___________in___________ a. Owners, AGM b. The chief Accountant, AGM c. The chief Executive Officer, AGM d. The Chief Financial Officer, AGMQuestion 9 In making a decision of whether to take on a new audit client, the auditor should perform all of the following except: 1. Reviewing the credit rating of the proposed client. 2. Performing preliminary tests of internal controls. 3. Evaluating the firm's ability to service the client properly. 4. Inquiring of third parties as to the reputation of the proposed client. 3 O 1 O 2 O 4
- 11 - Assume that you are a senior on an audit engagement and need to explain to your intern/trainee what each of the risk assessment involves. In your own words and using some terminology that is understandable to an intern who has not yet taken an auditing course, describe the risk assessment procedures and the reason to perform these procedures. (Explore any two risk or procedure or assessment). • Write your answers ON A PAPER. • Specify question number clearly. • Scan and email the answers in one file.24 From the given schedule, you are required to match audit evidence with their appropriate descriptions: Sl. No. Audit evidence Sl. No. Descriptions 1 Verbal A Bill attached to vouchers. 2 External B Explanation from client staff 3 Documentary C Confirmation by third party a. [(2) (B), (1) (C) and (3) (A)] b. None of the options c. [(1) (B), (2) (C) and (3) (A)] d. [(1) (B), (3) (C) and (2) (A)]Question 5 Which ONE of the following should be carried out after the audit firm has accepted an engagement as auditor? A Contact the outgoing auditors to ascertain if there are any reasons they should not accept the assignment B Ensure the audit firm has the experience and resources to conduct the assignment C Perform checks to ensure that there are no legal or ethical reasons why the new audit firm cannot act as auditor D Submit a letter of engagement to the directors
- Explain the purpose of an engagement letter which is signed immediately after the appointment with the audit client, and ANY FIVE (5) of its main contents.48 Audit working papers are used to record the results of the auditor's evidence-gathering procedures. When preparing working papers, the auditor should remember that working papers should be Group of answer choices designed to meet the circumstances and the auditor's needs on each engagement. the primary support for the financial statements being examined. kept on the client's premises so that the client can have access to them for reference purposes. considered as part of the client's accounting records that are retained by the auditor.18 An Independent Auditor is an outsider to an entity. He had to plan out his action seriously and thoroughly. Out of the seven steps in the process of audit which will be his first step from the options given below? a. Drafting a Report b. Scheduling an open meeting c. Requesting financial documents d. Preparing an audit plan Clear my choice
- As the audit associate, you were asked by the senior associate to check the completeness of confirmation letters. Upon your review, there is a supplier that has not yet given their reply. What alternative audit procedure would most likely be performed by the audit associate, assuming the audit is at its wrap-up stage? Choices Review the invoice register until audit report date Vouch subsequent payments Perform analytical procedures Send another confirmation letterThe audit report dates are:a. Closing date of client's bookb. The date on which the letter of representation was receivedc. The date when the audit report is submitted to the clientd. The date on which all the necessary audit procedures were performedhow do auditor gather audit evidence during the period of covid 19 ? 700 words
