Assurance Services – NBC Institute

AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

Question

Technology, essentially computerisation, has in recent times affected various aspects of life and business activities to varying degrees. For instance, this has led to online purchases and account processing from various locations beyond the domiciled bank branches. Though this electronic business and commerce has made things easier, challenges still persist in the process. As an auditor, it is necessary to evaluate the audit environment to gain proper knowledge of the client’s operating environment, whether manual or computerised. This is especially essential for your firm’s newly employed audit staff.

Required:

a. Prepare an advisory guide for these new audit staff, highlighting the application of information technology to the audit process. (6 Marks)

b. Discuss the relevant information technology tools that are necessary for the effective provision of assurance services. (9 Marks)

(Total 15 Marks)

Answer

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Tags: Assurance Services, Audit Process, Client Operating Environment, Information Technology, IT Tools, Risk Assessment
Level: Level 3

Topic: Audit of IT Systems and Data Analytics
Series: MAY 2024

AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

Question

The Directors of Hallmark Limited have decided that in order to improve its operating efficiency, there is need to increase the working capital of the company. The last audited financial statements of the company were up to September 30, 2018. A prospective investor has decided to perform due diligence on the company before investing a certain amount of money in the business. The Financial Controller of Hallmark Limited has advised the directors that prior to the due diligence exercise, there might be need to perform assurance services on the company’s financial result as the investor may not be willing to accept the last audited financial statements for the due diligence. Your father, who is a director of the company, has approached you as an accountancy student to give more explanations to him on the foregoing.

You are required to explain:
a. Assurance services (5 Marks)
b. The various levels of assurance services (7 Marks)
c. The components/elements of an assurance engagement (8 Marks)

Answer

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Tags: Assurance Services, Components of Assurance Engagement, Levels of Assurance
Level: Level 2

Topic: Assurance services
Series: MAR/JULY 2020

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

Question

Eebuks Ltd is a retailer of academic textbooks that sells through its own network of bookshops and online through its website. The revenue from the website includes both cash sales and sales on credit to educational institutions. The company has provided historical analysis from its trade receivables ledger indicating that for sales made on credit, 25% payment is received in the month of sale, 70% after 30 days, and the remainder are irrecoverable debts.

You are a Manager in Makafui & Associates, a firm of Chartered Accountants offering a range of services from audit to non-audit for its clients. On 1 July 2023, your firm was asked by Eebuks Ltd, a company that is not an audit client of your firm, to consider a potential engagement to review and provide an assurance report on Prospective Financial Information. Makafui & Associates has already conducted specific client identification procedures in line with money laundering regulations with satisfactory results.

Additionally, Eebuks Ltd has approached your firm to obtain an independent assurance opinion on its cash flow forecast, which is being prepared for its bankers in support of an application for an increase in its existing overdraft facility.

Required:

a) In line with ISAE 3400: The Examination of Prospective Financial Information, discuss FIVE (5) matters to be considered by Makafui & Associates before accepting the engagement to review and report on Eebuks Ltd’s Prospective Financial Information. (10 marks)

b) Assuming Makafui & Associates accepts the engagement, recommend EIGHT (8) procedures to be performed in respect of Eebuks Ltd’s cash flow forecast. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance Services, Audit Procedures, Cash Flow Forecast, ISAE 3400, Prospective financial information, Review Engagement
Level: Level 3

Topic: Assurance services, Planning, The audit approach
Series: JULY 2023

AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

Question

Required:

a. Prepare an advisory guide for these new audit staff, highlighting the application of information technology to the audit process. (6 Marks)

b. Discuss the relevant information technology tools that are necessary for the effective provision of assurance services. (9 Marks)

(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance Services, Audit Process, Client Operating Environment, Information Technology, IT Tools, Risk Assessment
Level: Level 3

Topic: Audit of IT Systems and Data Analytics
Series: MAY 2024

AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

Question

You are required to explain:
a. Assurance services (5 Marks)
b. The various levels of assurance services (7 Marks)
c. The components/elements of an assurance engagement (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance Services, Components of Assurance Engagement, Levels of Assurance
Level: Level 2

Topic: Assurance services
Series: MAR/JULY 2020

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

Question

Required:

b) Assuming Makafui & Associates accepts the engagement, recommend EIGHT (8) procedures to be performed in respect of Eebuks Ltd’s cash flow forecast. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance Services, Audit Procedures, Cash Flow Forecast, ISAE 3400, Prospective financial information, Review Engagement
Level: Level 3

Topic: Assurance services, Planning, The audit approach
Series: JULY 2023

Question Tag: Assurance Services

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AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

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AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

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AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

You're reporting an error for "AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd"

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

You're reporting an error for "AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning"

AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics

Guide on IT application in auditing and necessary IT tools for effective assurance.

You're reporting an error for "AAA – May 2024 – L3 – SC – Q7 – Audit of IT Systems and Data Analytics"

AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd

Explanation of assurance services, levels of assurance, and elements of an assurance engagement.

You're reporting an error for "AA – MarJul 2020 – L2 – Q5 – Assurance Services and Due Diligence for Hallmark Ltd"

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

You're reporting an error for "AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning"

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