The Audit Cycle - Chapter 3

Question 1

An Auditor Must Be what?

Answer 1

Qualified and have experience

Question 2

An Auditor may rely on what?

Answer 2

Internal auditors and ISA 610 (Explains Reliance)

Question 3

what does an auditor have?

Answer 3

powers and duties

Question 4

an auditor reports on?

Answer 4

true and fair view, compliance with legislation, other matters

Question 5

Is the work of internal Audit adequate for me to place reliance on? (ISA 610 para 9)

Answer 5

external auditor will review the internal auditors
objectivity
competence
professional due care
and will ensure internal auditor will communicate with external auditor

Question 6

is the internal auditors work relevant to part of my external audit? (ISA 610 para 10)

Answer 6

the external auditor will ensure that the internal auditors work covers some specific risk that the external auditor needs to audit

Question 7

What Powers to Auditors have?

Answer 7

1. Access to companies books and records
2. Receive all info and explanations the auditor requires for audit
3. Receive notice and speak at meetings
4. Receive notice and attend meetings proposing auditor removal
5. Upon resigning, right to ask directors to hold a general meeting

Question 8

What are the auditors duties?

Answer 8

1. Report to the members on whether or not the statements show a true and fair view
2. report to members on whether or not the statements have been prepared in accordance with relevant legislation
3. report to company members on other matters required by legislation
4. report to company members on any other specific legislation
5. to say why they are no longer the auditor of the company