5.8 documnttn//working pap

Question 1

current file

Answer 1

file containing client information relevant to current audit

Question 2

current file include

Answer 2

1. details of the testing and evidence gathered for this audit
2. mgt letter about the deficiencies uncovered in the internal controls

3., representation letter and confirmation letter

4. engagement letter
5. letters from third party such as bank and lawyers

6.minutes of meeting pertaining to current audit

Question 3

permanent file

Answer 3

1.file containing client information relevant to several audit

2.has to be updated at the start of every audit

Question 4

permanent file contains

Answer 4

1.client address

2.contract and lease agreement

3.key personnel info

4.accounting studs and policies

5.f/s and their audit report from previous years

6.flowcharts and narratives detailing the internal control systems

7.reports sent to the client during previous audit

Question 5

drawing conclusion

Answer 5

1. sufficient appropriate evidence must be gathered to give opinion abt the fair presentation of FS
2. if internal controls not effctve, adtr adopt substantive approach to increase reliance on evidence gathered from test of trsn and acc bal

3, if internal control effetve , adtr will test controls and gather further evidence thru subs, testing of trsn of acc and balances

4. will base opinion on the gathered evidence

Question 6

audit working papers

Answer 6

documentation of the audit work done by the adt team as evidence of the work done

Question 7

documentation- audit working papers

Answer 7

1.provide record of the work performed and evidence collected to help them form an opinion

2. will document every phase the audit from risk assent to risk response
3. documentation will vary from client to client depending on factors like risks assessed , level of judgment involved, persuasiveness of evidence

Question 8

audit working papers contains

Answer 8

name of clients, names of preparers and reviewers, cross referencing, audit period, file reference

Question 9

5.3 Practice Question 5

Answer 9

to try

Question 10

Assertions about classes of transactions and events, and related disclosures for the period under audit

Answer 10

Occurrence
Transactions and events that have been recorded or disclosed have occurred and pertain to the entity.

Completeness
All transactions and events that should have been recorded have been recorded, and all related disclosures that should have been included are included.

Accuracy
Transactions and events have been recorded appropriately and related disclosures have been appropriately measured and described.

Cut-off
Transactions and events have been recorded in the correct accounting period.

Classification
Transactions and events have been recorded in the proper accounts.

Presentation
Transactions and events are appropriately aggregated or disaggregated and clearly described; related disclosures are relevant and understandable.

Question 11

assertion to acc bal.

Answer 11

1.existence
Assets, liabilities, and equity interests exist.

2.R&O
The entity holds or controls the rights to assets, and liabilities are the obligations of the entity.

3. completeness
   All assets, liabilities, and equity interests that should have been recorded have been recorded and all related disclosures that should have been included, have been included.

4.AVA
Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded and related disclosures are appropriately measured and described.

5. classification
   Assets, liabilities, and equity interests have been recorded in the proper accounts.
6. presentation
   Assets, liabilities, and equity interests are appropriately aggregated or disaggregated and clearly described; related disclosures are relevant and understandable.