Audit Controls – NBC Institute

AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

Question

The role of auditors is commonly misconceived. Many people argue that the auditor is expected to detect all frauds and irregularities in a client’s business. Others believe that the auditor should act more like a court of justice where truth is defended. In fact, the auditor’s responsibilities, powers, and duties are defined by statutes, ethics, and auditing standards.

Required:

(a) What are the provisions available in the Companies and Allied Matters Act Cap C20 LFN, 2004, which seek to reduce the communication gap between the auditor and the shareholders?
(7 Marks)

(b) Explain EIGHT controls available to address the problem of the performance gap.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Controls, Auditor Responsibilities, Communication Gap, Companies and Allied Matters Act, Performance Gap
Level: Level 3

Topic: Ethical Issues in Auditing
Series: NOV 2011

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

Question

Aladdin Insurance Nigeria Limited is a private company that provides life and non-life insurance services. The company has annual gross premium of N15 billion.
Ordinarily, the underwriting process is manual and is initiated when a customer
walks into a branch and fills a proposal form requesting for an insurance policy (or
an agent fills in the form at the request of the customer). The proposal form
requires information relating to the subject matter of the insurance policy/cover
required by the customer as this will aid the company in assessing the risks
attached and will also help the underwriter to quote a reasonable premium
amount. The prospective insured must disclose all material and relevant
information. The policy proposal form requires important information, such as:

• The name and address of the customer;
• Occupation of the customer;
• Details of the property being proposed for insurance. This could be vehicle
details (for motor insurance) property (for burglary or fire) or other details
relating to life insurance, etc;
• Value of the property being proposed for insurance; and
• Previous insurance history of the client.

The underwriter reviews the information in the proposal form and assesses the risks
inherent in the contract with a view to making a recommendation as to whether to
accept or reject the proposal; if the recommendation is to accept, how much
premium should be charged. For external and complex risks, external inspectors are
engaged. After inspection, the report is sent to the underwriter to review and
consider if any risk recommendations should be made to the customer (usually on
how to properly manage risks) or if an amendment to the policy wordings is
required. The proposal form and the recommendation of the underwriter is passed
on to an approving authority based on the approval limits.
On approval of the policy, the policy terms are communicated to the customer for
review and acceptance. On acceptance, the customer signs the proposal form and pays the premium. Payment method includes cash, cheques, bank transfers. The
details of the policy are recorded in the system by the underwriters who also act as
the accountants. Based on NAICOM‟s requirements, premium should be paid before
the insurance cover starts.
However, due to the COVID 19 pandemic, the Federal Government announced a
lock down of Lagos, thereby imposing a restriction on movement of goods and
persons in the state. In response to this, the company bought a new underwriting
system and automated its entire underwriting process.

Required:

a. List FIVE control areas for General Information Technology (IT) Controls and examples of controls that can be found in each area.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Controls, Information Systems, IT Controls
Level: Level 2

Topic: Auditing in a Computerized Environment
Series: NOV 2020

AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

Question

Required:

(a) What are the provisions available in the Companies and Allied Matters Act Cap C20 LFN, 2004, which seek to reduce the communication gap between the auditor and the shareholders?
(7 Marks)

(b) Explain EIGHT controls available to address the problem of the performance gap.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Controls, Auditor Responsibilities, Communication Gap, Companies and Allied Matters Act, Performance Gap
Level: Level 3

Topic: Ethical Issues in Auditing
Series: NOV 2011

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

Question

Required:

a. List FIVE control areas for General Information Technology (IT) Controls and examples of controls that can be found in each area.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Controls, Information Systems, IT Controls
Level: Level 2

Topic: Auditing in a Computerized Environment
Series: NOV 2020

Question Tag: Audit Controls

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AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

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AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

You're reporting an error for "AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing"

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

You're reporting an error for "AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment"

AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing

Clarifies auditor's statutory responsibilities, provisions in CAMA to reduce the communication gap, and controls for addressing performance gaps.

You're reporting an error for "AAA – Nov 2011 – L3 – SB – Q4 – Ethical Issues in Auditing"

AA – Nov 2020 – L2 – Q1a – Auditing in a Computerized Environment

List five general IT control areas and provide examples of controls within each area.

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