Auditing 2A LU3-4

Question 1

What is the Audit process ?

Answer 1

1. Pre-engagement
2. Planning
3. Obtaining evidence
4. Evaluation ,conclusion ,Reporting

Question 2

What are the 3 Pre -Engagement Activities ?

Answer 2

Step 1 - Do we want the client ? Client Investigation
step 2 - Determining skills and competence requirements to perform the audit ?
Step 3 -Determining and agreeing on the terms of the engagement .

Question 3

What is an engagement letter ?

Answer 3

If An audit firm has determined that they want to and can take on the perspective client , a contract is drawn up and this is called an Engagement letter .

Question 4

3 Important points about the engagement letter ?

Answer 4

• It sets out the nature of the engagement .
  -It sets out the responsibilities of the parties involved in the engagement .
  -It needs to be issued for all new engagements .

Question 5

What is internal Control for Audits ?

Answer 5

It is a process that is designed , implemented and maintained by those charged with governance, management and other personel in the entity to provide reasonable assurance about the achievement of the objectives.

Question 6

Internal control objectives link with Assertions

Answer 6

Valid
Accurate
Complete