What is an audit? | KNEC| KASNEB| KISM| Ebooks Kenya

The explanatory foreword to the International Standards on Auditing (ISA) describes audit as the independent examination of and expression of an opinion on the financial statements of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation.

The objective of an audit is to enable auditors to express an opinion whether the financial status give a true and fair view and have been properly prepared in accordance with the relevant statutory requirements.

NB: – The auditor does not certify the financial status but reports that in his opinion they give a true and fair view.

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Define the term audit programme
List five limitations of an audit
How does audit planning assist in the conduct of an audit?
What is the purpose of an audit report ?
Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
Distinguish between a procedural audit and a balance sheet audit
What are computer assisted audit techniques (CAATs)?
Briefly explain the following terms as used in auditing: Vouching audit, Inherent risk, Control risk and in depth audit tests
Briefly explain the types of audit opinion that would normally arise from a limitation in the scope of audit
Define and explain the meaning of an audit programme
Write brief explanatory notes on the following audit terms: Vouching audit;
List and briefly explain four objectives of an audit of financial statements
List two advantages and two disadvantages of using standardised audit programmes during audit assignments
What is an ―interim audit‖?
Explain the computer assisted audit techniques listed below: Embedded audit facilities and Integrated test facilities
Identify four factors that should be taken into consideration by an audit firm when allocating staff to audit assignments
List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
List six contents of an unqualified audit report
What is an audit peer review? and state and briefly explain the objectives of an audit peer review
Clearly outline the statutory responsibilities of an external auditor in relation to the audit of a company‘s financial statements
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required:Provide the audit trainees with guidelines on how they should prepare audit working papers
Outline and explain four ways in which the objectives of an audit of financial statements have changed over the years
Explain the reliability of bank statements as audit evidence
Your audit firm, Kimani and Associates has been contracted by the government to audit the procurement system followed by the government. Required; Outline the audit procedures an audit firm should follow in the verification of a manufacturing company‘s liabilities
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: Identify the type of information that the audit trainees should include in the audit working papers
Identify any four contents of an audit engagement letter
Your audit senior has assigned you the responsibility of auditing the stock of your client, XYZ Supermarket Ltd. for the year ending 31 December 2005.The company‘s stock take is carried out once a year in the month Novembersimultaneously for all the retail outlets.Required:State the audit assurances you would seek to obtain in the audit of stock
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper. ‘Required: Explain the importance of audit working papers
You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: List any four advantages of standardized audit working papers
List and briefly explain five disadvantages of an interim audit
Outline the basic elements of an unqualified audit report
What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?
It has often been said that the auditors‘ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements. Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required)
Explain the nature and purpose of a post-audit review
The auditor should obtain sufficient and appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Identify and briefly explain any three procedures for obtaining audit evidence
Identify five audit benefits that could be derived from using Computer Assisted Audit Techniques (CAATs) when carrying out testing of computer records
Explain the meaning of the following terms in relation to audit reports. Limitation in the scope of the audit and Emphasis of matter
Give a definition of an ―internal control system‖
State the basic element of the scope paragraph of an audit report
Identify any four circumstances under which an interim audit would be ideal

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