Under the provision of the Companies Act, the directors' report is required to disclose any transaction or event of a material and unusual nature which had occurred between the end of the financial year and the date of the directors' report.

 

Required:

 

Explain FIVE (5) audit procedures for subsequent events. 

 

 

QUESTION 2 

 

An auditor is required to report either on financial statement or group financial statements. However, sometimes the subsidiaries will be audit by different auditors. The act requires the holding company auditor or principal auditors to express an opinion on the group financial statement as a whole but it does not provide that all subsidiaries must be audit by the same auditors.

 

Required:

 

Discuss the factors that must be considered by a principal auditor when relying on the work of other auditors.

 

 

QUESTION 3

 

As required by bursa Malaysia, each listed company must have their owned internal auditor to do internal auditing for their company. To ensure the effectiveness of internal audit, the staff should have qualified, skilled and experience who can work in accordance with the Code of Ethics and the International Standard.

 

Required:

 

Explain FIVE (5) importance of internal audit in an organization. 

 

 

QUESTION 4 

 

Nowadays, Information of technology (IT) is widely used in many areas. The use of IT has provided many benefits to the daily lives of individuals and the business can be run extensively and efficiently. 

 

Required:

 

Describe FIVE (5) potential risks for the use of IT for internal controls.

 

 

QUESTION 5 

 

Material misstatement in the financial statements can result from error and fraud. Errors are unintentional misstatement or omission of amount while fraud involving intentional misstatement that can be arising from fraudulent financial reporting and misappropriation of asset.

 

Required;

 

Discuss FIVE (5) errors might be occurs under fraudulent financial reporting and misappropriation of asset.

 

 

QUESTION 6 

 

Audit sampling need to be done as the companies grew in size and complexity. Audit standards recognize two method of audit sampling which are statistical sampling and non-statistical sampling.

 

Required:

 

Distinguish between statistical sampling and non-statistical sampling.

Answer rating: 100% (QA)

Question 1 Explain FIVE 5 audit procedures for subsequent events 1 Analyze the minutes of the board of directors meetings to identify any subsequent events that occurred during the period under audit ... View the full answer