- 5 Marks
AA – Mar 2023 – L2 – Q1a – Planning and Approach for Audit and Assurance Engagements
Explain the advantages and audit procedures of conducting an interim audit.
Question
Kosobi Insurance Company Ltd (KICL) prepares its annual financial statements to 31 December each year. Due to the magnitude of transactions, interim financial statements are prepared each year and subjected to an interim audit. This is done to facilitate early completion of the final audit of the annual financial statements. The finance and accounts team of KICL consider this to be more work and unwarranted.
You are the Audit Senior and head of the audit team carrying out the audit field work on KICL. As part of your exit meeting with management of KICL, you intend to justify the need for an interim audit.
i) State THREE (3) advantages in conducting Interim Audit.
ii) Identify TWO (2) audit procedures in conducting Interim Audit.
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