Past Questions & Answers
- 15 Marks
AA – Nov 2021 – L2 – Q5 – Audit Evidence
Discuss analytical review procedures and their purpose in auditing.
Question
One of the audit testing procedures available to the auditor is the Analytical Review Procedure.
a. Explain what is meant by Analytical Review Procedures. (6 Marks)
b. Explain FOUR types of general Analytical Review Procedures. (4 Marks)
c. What is the purpose of performing Analytical Review Procedures at the audit planning stage? (5 Marks)
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- Tags: Analytical review, Audit Procedures, Financial Analysis, Planning Stage
- Level: Level 1
- Topic: Audit evidence
- Series: NOV 2021
- 20 Marks
AA – Nov 2021 – L2 – Q4 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)
Discuss the implications of supplying bank transaction information and the principles guiding accountants.
Question
Your firm audits Sabona Limited, a privately owned company, which is a customer of Oldie Limited, another privately owned client company. The managing director of Oldie Limited has asked your firm to supply Sabona Limited bank transactions for the last six months as they are concerned about their ability to honour their financial obligation.
Required:
a. State whether or not you would supply this information and the reasons for your actions. (5 Marks)
b. Explain briefly FIVE fundamental principles issued by the Institute of Chartered Accountants of Nigeria (ICAN) as guides to accountants. (10 Marks)
c. Describe FIVE matters that could affect the independence and integrity of the auditor. (5 Marks)
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- Tags: Auditor Independence, Bank Transactions, Ethical Principles, ICAN Guidelines
- Level: Level 2
- Topic: Professional Ethics and Code of Conduct for Auditors
- Series: NOV 2021
- 20 Marks
AA – Nov 2021 – L2 – Q3 – Internal Audits
Discuss audit considerations for Youthplus, a Not-for-Profit Organisation.
Question
Youthplus is a Not-for-Profit Organisation (NFPO) established by well-meaning Nigerians. The aims and objectives of the NFPO include raising funds to assist youth corpers who, after their service, are unable to secure employment, to start small-scale businesses instead of waiting for white-collar jobs that are not in existence. NFPO solicits funds from the public, private, and foreign organisations. Youthplus has been in existence for five years, and your firm has been appointed as their auditors.
Required:
What factors would you put into consideration when carrying out the audit of Youthplus in the following areas?
a. Planning (4 Marks)
b. Risk (4 Marks)
c. Internal control (4 Marks)
d. Audit evidence (4 Marks)
e. Reporting (4 Marks)
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- Tags: Audit evidence, Audit Planning, Internal Control, NFPO, Reporting, Risk Assessment, Youthplus
- Level: Level 2
- Topic: Internal Audits
- Series: NOV 2021
- 20 Marks
AA – Nov 2021 – L2 – Q2 – Audit Evidence
Discuss characteristics of good audit evidence and testing procedures for gathering it.
Question
ISA 500 on audit evidence sets out the objective of the auditor is to design and perform audit procedures in such a way to enable him to:
(i) Obtain sufficient and appropriate audit evidence
(ii) Draw reasonable conclusions
(iii) Base his audit opinion
Required:
a. Identify THREE characteristics of a good audit evidence. (3 Marks)
b. List and explain briefly FIVE testing procedures for gathering audit evidence. (10 Marks)
c. What factors will the auditor consider when assessing the reliability of audit evidence? (7 Marks)
(Total 20 Marks)
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- Tags: Audit evidence, ISA 500, Reliability, Testing Procedures
- Level: Level 2
- Topic: Audit evidence
- Series: NOV 2021
- 20 Marks
AA – Nov 2021 – L2 – Q1b – Audit Reports
List the minimum elements required in an auditor's report according to ISA 700.
Question
The auditor’s report is regulated by either the law (CAMA 2020) or regulation (ISA 700).
i. State the minimum elements of the auditor’s report as required by ISA 700. (10 Marks)
ii. Explain briefly the matters to be expressly stated in the report of the auditors of a company to its members on the accounts examined by them as stated in CAMA 2020. (10 Marks)
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- Tags: Audit Standards, Auditor's Report, CAMA 2020, ISA 700
- Level: Level 2
- Topic: Audit Reports
- Series: NOV 2021