Cover page

Table of Contents
Question 1…………………………………………………………………………………….….3

Question 2………………………………………………..………………………………………3

Question 3………………………………………………………………………………………..4

Question 4………………………………………………………………………………………..5

Question 5……………………………………………………………………………………….6

Question 6……………………………………………………………………………………….7

Bibliography……………………………………………………………………………………10
Question 1

A.

The auditor is responsible for achieving fair certainty by carrying out the audit
engagement and sharing his opinions throughout the audit report. This voicing of
opinion results in fair confidence that is communicated in an accounting report to
consumers of financial statements[ CITATION Has16 \l 1033 ]. Nevertheless, in order to
establish an audit opinion, the auditor must remain impartial but he should cannot voice
an opinion through his own and of his own free will, but his opinion should be founded
on facts, i.e. audit facts, as it is obtained as a consequence of the execution of audit
procedures mostly during audit engagement, so-called audit evidence, but it should be
adequate and acceptable for fair assurance to be given.

B.

The auditor must plan and carry out audit procedures throughout order to obtain fair
confidence about the financial accounts, which would be a strong even if not absolute
degree of confidence, in order to obtain sufficient adequate audit proof to draw rational
conclusions from which to base the auditor's opinion. A substantial part of the audit
performance function includes the acquisition and review of audit data, which is mainly
derived from audit procedures conducted mostly during audit engagement, although
which could also be collected from other outlets. For instance, sources such as previous
audits; given that adjustments have been carefully taken into consideration for the
meantime; or even the quality management procedures of the business, particularly
around customer acceptance and continuation.

There are different audit procedures which are then used to gather and analyze
information but are often implemented in combination. In contrast to investigation, these
may provide review, observation, validation, recalculation, re-performance including
analytical methods, as the latter typically will not include adequate audit proof of its own
terms.

Question 2

Where even the financial statements were prepared when using wealthiest of the
current concern, that the use of the going concern seems to be inappropriate throughout
the auditor's judgment, the auditor will also give an opposing viewpoint throughout his
report [ CITATION Ale10 \l 1033 ]. This applies irrespective of whether the financial
statements incorporate disclosure of the inadequacy of those responsible for the use by
governance of the financial reporting basis of the current concern.
Unless the use of the accounting basis becomes inadequate and those responsible for
administration have preferred to prepare the financial statements on an alternate basis,
which even the auditor finds to be suitable, and also have made sufficient disclosures
throughout the financial statements about the basis for the planning as well as the
explanations for the planning, so the auditor will be able to disqualify the financial
statements. The reporting provision is somewhat different for organisations explaining
conformity with the Code as well as the auditor reports whether he would have anything
important to add or to bring awareness to that in regard to the director's comment
throughout the financial statements on how much the directors found it necessary to
follow the accounting basis of the current issue throughout the planning of the financial
statements. If the auditor is needed or has agreed to convey key audit concerns,
concluding that using the accounting basis of the existing concern is acceptable and
thus no material ambiguity has been found, he must still determine if there really is a
key audit problem relevant to the continuing concern.

Question 3

Without the need for an external credit check from either a rating agency including such
Dun & Bradstreet or even without reference to existing credit caps, the credit manager
does have the right to accept credit.

Without any separate manual or device verification, the accounts receivable overseer
performs the billing process. In drafting invoices, the AR boss has the right to modify the
specifics of the fee forms submitted by the sales associates and then use the changed
specifics. Furthermore, there is no monitoring to ensure that perhaps the daily averages
of the fee forms are identical to the daily invoice averages.

The AR supervisor does have the power to allow payments to be charged off as
uncollectible since this AR subsidiary ledger is not independently checked and therefore
there is no comparison including its AR subsidiary ledger only with AR management
account kept by the bookkeeper throughout the general ledger [ CITATION Rec08 \l 1033 ] .
Throughout the monthly report of contribute to the increased to the bookkeeper, the AR
supervisor may simply provide collectible accounts. Similarly, accounts will stay on the
books even after they are late because, if the AR boss omits these from the monthly
notice to the bookkeeper, extra credit can be given.

By conducting three contradictory tasks, the cashier processes refunds from debit and
credit card sales: initially collecting cash receipts, transferring money in a bank account,
and then recording the receipts. The cashier provides the details, which could be
overdue, changed, or missing, while the bookkeeper ultimately reports the cash
receipts. There is no objective assurance of the authenticity or comprehensiveness of
cash receipts without the need of a checked amount deposited or a checklist of checks.
The cashier often reconciles the monthly financial accounts, which are also
incompatible with processing cash receipts while depositing money in a savings
account.

Without an inquiry into the causes and specifics of each delinquent account, the
bookkeeper permits the start writing-off of uncollectible accounts. The criteria developed
for paying off overdue accounts would be too restrictive and does not allow for the
avoidance at such an earlier time of awarding additional credit, including when an
account appears delinquent for the first time. Through not notifying the credit officer that
a contractor's account has indeed been written off, the bookkeeper will also implicitly
award extra credit. In comparison, the bookkeeper has the contradictory responsibilities
of approving and documenting journal entries for write-offs.

There seems to be an increased risk of consumer conflicts and consequential losses

over orders delivered. As a result of products being distributed against illegitimate
orders issued with the business, there seems to be an increased risk of damage to the
company. Prior to the acquisition of products delivered from consumers, there is a very
high chance that sales proceeds may be wrongly recognized. There is a similar chance,
however, that estimated earnings would be overstated. There is an elevated probability
that bad loans might be sustained. It was because there was a conflict of interest
between sales reps in raising sales to consumers while being accountable for mitigating
the possibility of bad debts. The question is exacerbated by the fact that, depending on
revenue statistics, sales reps earn incentive payments. There seems to be an
inadequate audit trail for financial transaction throughout the department of company
accounts. The revenue from purchase purchases only at point of distribution of
computers purchased by consumers must be acknowledged.

Question 4

Here, the auditor's integrity is considered to be undermined and the auditor's integrity is
broken. There is a chance of self-interest liability under section 290.138 as every
member of the audit team enters the audit customer relationship by recognizing that
perhaps the member may follow the customer throughout the future. As a consequence,
he should never be named as the patient's officer because, if so, he should be excluded
from the audit committee team member who will investigate the respective company.

In certain situations, linked party purchases are carried out in the context of an
organization's regular business, such as a corporation may procure certain products for
all the organizations within a group or, rather, representatives of the entity's
administration may sometimes obtain the same product or services provided to
customers of the organization for that same 'staff discount' available to other workers. In
such a situation, transactions with associated parties do not face a greater risk of
material misrepresentation under financial records than transactions similar to those
with unrelated parties. Furthermore, the identification challenge posed by the auditor is
typically higher in relation to associated parties than with other claims throughout the
financial statements. Even though the audit is correctly organized and carried out under
the ISAs, the inherent shortcomings of an audit, by which any material errors cannot be
detected, are amplified by peculiar reasons such as:

 The nature of such associated party partnerships and transactions might not
have been known to management because something doesn't understand the
scope of its arrangement and the connection with specific reporting standards.
 Related party relationships can provide the possibility of management
conspiracy, manipulation or deception and, as a result, present an increased risk
of fraud.

ISA 550 allows the auditor to perform a management inquiry in order to locate related
parties, particularly modifications from the previous era, and to clarify the essence of
their relationship with both the entity, and to also assess if transactions were made with
such related parties within the audited era or, if so, the form and intent of the
transactions. The explanation for this approach would be that management, considering
the risk of bribery and concealment raised by management bypass of controls, is
typically throughout the better position to detect related party relationships and
payments than just about any other subject. Management is expected to be mindful of
partnerships which have economic value to the entity in general which are more able to
anticipate a risk of content misrepresentation. Throughout the case of recurring audits of
the very same company, management inquiries provide a justification for checking the
accuracy of the auditor's record of relevant parties reported in prior audits of the details
presented by management for both the current year. Indeed, the identification of the
relevant parties as well as the essence of their association with the company is typically
reported and revised on an annual basis throughout the permanent portion of the audit
file.

In addition to executives, internal auditors, within-house legal counsel or staff with the
power to initiate, conduct or report major transactions beyond the usual course of
business could be those who may learn about it and monitor the associated parties of
the entity. In certain situations, though, the auditor can find that controls by relevant
parties are insufficient or non-existent within an individual [ CITATION Mas12 \l 1033 ]. This
may arise for a variety of reasons, including the fact that management will not
comprehend the requirements of the relevant parties under the relevant financial
reporting system, or rather that it applies no value to those requirements.

Question 5
Sales, purchases, and wages earned during the accounting period comprise
transactions. Account balances comprise all the assets, liabilities and ownership
interests contained in the financial status statement at the end of the year. There is
clearly a link between the two, and if the auditor conducts checks to validate the
presence of transactions, this would also provide some evidence of the presence of
receivables. While other assessments directly based on life could be carried out by the
auditor,

Occurrence:

Check the random selection from the Sun Building Company Cash Book. The
transactions and events which have been reported or disclosed have happened, and
the individual is responsible for those transactions and events.

Completeness:

Both activities and incidents that were to be documented were registered and all
associated disclosures that were to be included throughout the financial statements
were made.

Accuracy:

The sums and other details relating to the transactions and activities reported were
properly recorded as well as the relevant disclosures were calculated properly.

Question 6

I. independence:

External auditors are direct representatives of the organization being audited, or

contract workers. Because they have to keep managers satisfied to get compensated,
their general objectivity may be doubtful. Laws to eliminate prejudice concentrate on
avoiding potential conflict of interest. Auditing something the inspector appears aligned
with creates potential conflicts of interest which can bring into question the audit results.
Active internal auditors are unlikely to audit their own jobs or procedures, activities or
groups we have and have recently held responsible for. For companies hired by the
business being audited, audit committees operate. These auditors should also, as
internal auditors, adhere to stringent guidelines [ CITATION Deb17 \l 1033 ]. The
regulations forbid external auditors from establishing banking partnerships or other
forms of connection with the business being audited, including internal auditors. A
resulting contradiction will jeopardize the credibility of the audit reports whether the
auditor has already been retained by the organization being audited and may be in
negotiations with the organization about job opportunities.
II. The work carried out on systems of internal control and operations;

The Internal Control Panel, which would be the executing body underneath the
leadership of the President, shall consolidate and supervise the state of the internal
control system's functioning of the organization, and shall contribute to the sustainability
and development of our internal control systems. Other aspects and all the other
modules of the internal control system are based on the control environment. The
control system requires fundamental principles, administrative knowledge, employee
honesty and administrative guidance, etc. The management creates a method of
managing operations to avoid danger associated with any target. All initiatives to be
accompanied by the staff should be included in such control activities. The related
decision-making material must be gathered and published in a timely manner. Events
which yield data can originate with sources which are internal or external. For reaching
management targets, coordination is very critical. Employees should know exactly what
is expected of them now and how their duties are linked to the operations of others. It is
therefore very important for owners to communicate with certain vendors from outside
parties.

III. Reporting responsibilities:

An auditor is a professionally trained entity who is assigned to give an impartial,

competent and knowledgeable opinion to shareholders mostly on audited financial
statements by the managers. Third parties seeking to participate in transaction with the
firm will also benefit from an audit as it helps to determine the authenticity of the
information presented. Reporting to the members was its primary responsibility of an
auditor. The report shall state whether the financial reports, in the judgment of the
auditor, give an accurate and reasonable view of the state of the business of the
organization including whether they have become compiled in compliance with the
applicable requirements of the Companies Acts as well as other appropriate regulations
and accounting principles[ CITATION Aus13 \l 1033 ].

An audit of ethical competence must be conducted by auditors. If they really do not

satisfy their responsibility to exercise good competence and consideration, they could
be liable, in fact, for liability to the company or even its owners. The impartial auditor
therefore has a duty to conform with the requirements agreed by his skill and
experience of his practice. The auditor's duty is to express a view about whether the
material throughout the financial report has been reasonably provided by management.
In order to do just that, the auditor gathers evidence in order to obtain adequate
confidence that perhaps the accounts seem to be free of material error.
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