In order to form an audit opinion, auditors must obtain sufficient appropriate audit evidence. International Standards on Auditing identifies the types of auditing procedures that an auditor might carry out in order to obtain audit evidence.
Assume that the auditor is planning for the audit of a car accessories manufacturing company. The total assets of the company are OMR 50 Million, liabilities are OMR 30million and share capital is 20 Million. The company use high level technology to manufacture the car accessories for global market. The auditor believes that the financial statements are at risk of material misstatement.
Required
Considering the broad categories of types of techniques of collecting audit evidence below, give examples, where applicable of specific audit technique that could be undertaken with regard to the audit of financial statement and discuss the reliability of the evidence received from those procedures.
1. Inspection.
2. Observation.
3. Confirmation.
4. Recalculation.
5. Re-performance.
6. Analytical procedures. 7. Inquiry.
General Instruction
1. You are required to write a report.
Font: Times New Roman, font size 12 and a line spacing of 1.5.
2. This Assignment should be completed by group of two students and technically the assignment should be as good as possible: well organized.
3. You are strongly advised to use MS word and should be clearly typed and numbered
4. Do not copy from any material, try to write in your own words, and also be aware of the plagiarism policy of the college.
Plagiarism occurs when others work such as print material, images, audio-visual creations, computer programs, electronic materials, etc. are used without appropriate acknowledgement and reference
Disciplinary Action for Student Plagiarism
First Offense: Written warning and repeat the work
Second Offense: Zero mark and suspension for one semester
Third Offense: Dismissal from the college
5. This penalty applies to both the copier and to the copied.
6. First page of the assignment must include the details of the student i.e Name,
student ID number and section number.
7. Last date to submit the assignment is 18th December 2022
that an waditre might caery out in onder to abtain aude midince. risk is maferial mbitaintwols. Requirest trint those procydures 1. Iregectiven. 2. Otwervation. 3. Confirmation. d. Necabulation A. Re-petforinanke. 6. Andytkial provodures 7. Inquiry General fastruction 1. Yoe are nequired be wnite a regart. mumbered of the plapiariem polisy od the colleper. tpproperate acknowiedgrment and nifirtuser Driciplicary Action for Stabent Maciuriso - Riest Colense. Writent warning and ncpoat the wink 3. The prealty applies to beth the orgien and be the ougied stubert ID muntber and section namilvr. that an waditre might caery out in onder to abtain aude midince. risk is maferial mbitaintwols. Requirest trint those procydures 1. Iregectiven. 2. Otwervation. 3. Confirmation. d. Necabulation A. Re-petforinanke. 6. Andytkial provodures 7. Inquiry General fastruction 1. Yoe are nequired be wnite a regart. mumbered of the plapiariem polisy od the colleper. tpproperate acknowiedgrment and nifirtuser Driciplicary Action for Stabent Maciuriso - Riest Colense. Writent warning and ncpoat the wink 3. The prealty applies to beth the orgien and be the ougied stubert ID muntber and section namilvr
Study Help