QUESTION $44\mathrm{.}1$ Your audit firm is $.$engaged to verify if critical controls that monitor a MaganaBeauty Parlour $\text{'}$s financial data work as intended. Explain to your team clearlythe following elements of audit scope they should consider.a$)$ Entity Aspects.b$)$ Reliable Information.c$)$ Proper Communication.d$)$ Evaluation.e$)$ Comparison.QUESTION $5(3$ marks$)4\mathrm{.}2$ Monitoring helps determine whether internal controls are adequatelydesigned, properly executed and effective at any given point in time. You arerequire to describe with an example Accounting system as an element ofinternal control$(5$ marks$)5\mathrm{.}3$ Indicate the correct the answer on the following statements:$1.$The fundamental objective of the audit of a company is to:$($a$).$ Protectinterests of the minority$5\mathrm{.}1$ The Public AcoOuntants and Auditors Board $($PAAB$)$ in Namibia is a statutory bodyand functions in terms of the Public Accountants and Auditors Act $($Act $51$ of$1951).$You have just passed the Board examination. Explain to your newcolleagues the main five functions of PAAB.$(10$ marks$)\mathrm{.}5\mathrm{.}2$ Both audit and assurance services play a key role during the evaluation of acompany's financial record. However, there is a difference between audit andassurance services.You are required to ddiscuss five $(5)$ differences between thetwo professions.$(10$ marks$)($b$).$ Detect$($c$).$ Assess the effectiveness of$(1$ mark$)$theand$($b$).$ Establishment of internal controls$($c$).$ Keeping proper accounting records$4($a$).$International$($a$).$ Reporting to the shareholders on the accuracy of the accountsInternational aunn Standards Board$2..$ Why do auditors concentrate their efforts on material items in accounts?$($d$).$ Supplying information and explanations to the auditor$($a$).$ Because they are easier to audit$($b$).$ Because it reduces the audit time$($c$).$ Because the risk to the acCounts of their being incorrectly stated is greater$($d$).$ Because the directors have asked for it$($b$).$ Financial Accounting Standards Boarda. Inventory$\mathrm{.}43.$ Which of the following is NOT the responsibility of a company's directors?$(1$ mark$)($d$).$ Auditing Practices Boardb. Cost of goods sold.errors$($c$).$ International Audit and Assurance Standards Boardc. Bad debt expense.QUESTION $6$thed. Accounts receivable.company'sandA qualified audit opinionAn independent auditorAuditing evidence$(3$ marks$)$Meaning of Audire $"$in auditing$(3$ marks$)$standards are issued by the: $(1$ mark$)(3$ marks$)5.$ If sales were overstated by recording a false credit sale at the end of the year,where could you find the false "dangling debit"?$(3$ marks$)(1$ mark$)$shareholdersfraudperformance$6\mathrm{.}1$ Describe the following terminologies used in audit and Assurance.Going concern$(1$ mark$)(3$ marks$)(3$ marks$)(3$ marks$)(3$ marks$)(3$ marks$)6\mathrm{.}2$ As a Profession at an audit fim in town, when you find misstatements as youperform an audit, you're responsible for making an assessment determinewhether the misstatement represents an error or fraud. Now you are required toclearly give a difference between fraud and error.$(10$ marks$)($Total $25$ Marks$)$Total $(25$Marks$)$prevent$($d$).$ Attest to the credibility of the company's accounts