Auditing

Question 1

What is an Auditor ?

Answer 1

An Auditor is an individual who audits financial statements and obtains reasonable assurance providing that the financial statements are free from material misstatement.

Question 2

What is the Duties of Auditor ?

Answer 2

Audit Financial statements
Provide reasonable assurance depending on financial statements.
Uphold Code of conduct and apply policies .
Act in due care and appropriate competence .
express an opinon on Financial statements.

Question 3

What are the 4 types of Auditors ?

Answer 3

1. Internal Auditor
2. External Auditor
3. Forensic Auditor
4. Government Auditor

Question 4

Name the Two Accounting bodies

Answer 4

SAICA -SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS
IRBA - INDEPENDENT REGULATORY BOARD OF AUDTIORS

Question 5

In order for a audit to obtain REASONABLE ASSURANCE , 5 STEPS ?

Answer 5

1. Three party relationship
2. Suitable criteria
3. appropraite subject matter
4. evidence
5. assurance report

Question 6

What are the assertions for Balances ,Account balances ?

Answer 6

1. Existence
2. Presentation
3. rights
4. completeness
5. classification
6. Accuracy

Question 7

What are the assertion for transactions ?

Answer 7

1.Existence
2. Occurence
3. Accuracy
4. presentation
5. cut off
6. Classification

Question 8

Name the threats with conceptual framework ?

Answer 8

1. Self -Interest
2. Self -Review
3. Intimidation
4. Familiarity
5. Advocacy

Question 9

Fundamental Principle

Answer 9

1. Integrity
2. Confidentiality
3. Objectivity
4. Professional competence and due care
5. Professional Behaviour