Audit Firms – NBC Institute

AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

Question

In a recent seminar you attended, it was explained that although auditors can incur civil liability under various statutes, it is far more likely that they will incur liability for negligence under common law. The paper presenter mentioned cases against auditors which were in this area. You also learnt that auditors must be fully aware of the extent of their responsibilities, together with steps they must take to minimize the danger claims arising from professional negligence.

Required:
a. Discuss the extent of auditors’ responsibilities to shareholders and other stakeholders during the course of their normal professional engagement. (8 Marks)

b. Outline FIVE steps that audit firms can take to minimize the danger of claims against them. (5 Marks)

c. Itemize TWO steps that must be taken to minimize the danger of claims when the company is deemed to have been distressed. (2 Marks)
(Total 15 Marks)

Answer

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Tags: Audit Firms, Auditor's responsibility, Legal Liability, Professional Negligence
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

Question

Audit firms are required to ensure that their quality control policies and procedures are documented and ……………… to the firm’s personnel.

Answer

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Tags: Audit Firms, Communication, Documentation, Policies, Procedures, Quality control
Level: Level 3

Topic: Quality Control in Audit Firms
Series: NOV 2012

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

Question

The objective of the auditor, according to ISA 300 – Planning an audit of financial statements, is to plan and perform an audit in an effective manner.

a. Explain the benefits of audit planning. (5 Marks)
b. Why is it important that audit firms should maintain the quality of their work? (5 Marks)
c. Explain the procedures a firm of auditors should establish internally to maintain the quality of its work. (10 Marks)

Answer

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Tags: Audit Firms, Audit Planning, Audit Procedures, ISA 300, Quality control
Level: Level 2

Topic: Planning an Audit
Series: MAY 2022

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

Question

You are the manager in charge of the audit of God First Microfinance Co. Ltd for the year ended 31 December, 2021. Due to the highly regulated environment in which such companies have to operate, your partner has requested that, right from the planning stage of the audit, you strictly apply the requirement of ISA 220: Quality Control for an audit of financial statements.

Required:
State FIVE (5) reasons for the need for a quality control system in accounting firms.

Answer

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Tags: Accounting, Audit Firms, ISA 220, Quality control, Regulatory Environment
Level: Level 2

Topic: Professional and Ethical Considerations
Series: DEC 2022

AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

Question

Required:
a. Discuss the extent of auditors’ responsibilities to shareholders and other stakeholders during the course of their normal professional engagement. (8 Marks)

b. Outline FIVE steps that audit firms can take to minimize the danger of claims against them. (5 Marks)

c. Itemize TWO steps that must be taken to minimize the danger of claims when the company is deemed to have been distressed. (2 Marks)
(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Firms, Auditor's responsibility, Legal Liability, Professional Negligence
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

Question

Audit firms are required to ensure that their quality control policies and procedures are documented and ……………… to the firm’s personnel.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Firms, Communication, Documentation, Policies, Procedures, Quality control
Level: Level 3

Topic: Quality Control in Audit Firms
Series: NOV 2012

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

Question

The objective of the auditor, according to ISA 300 – Planning an audit of financial statements, is to plan and perform an audit in an effective manner.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Firms, Audit Planning, Audit Procedures, ISA 300, Quality control
Level: Level 2

Topic: Planning an Audit
Series: MAY 2022

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

Question

Required:
State FIVE (5) reasons for the need for a quality control system in accounting firms.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting, Audit Firms, ISA 220, Quality control, Regulatory Environment
Level: Level 2

Topic: Professional and Ethical Considerations
Series: DEC 2022

Question Tag: Audit Firms

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AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

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Question Tag: Audit Firms

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AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

You're reporting an error for "AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability"

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

You're reporting an error for "AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms"

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

You're reporting an error for "AA – May 2022 – L2 – SB – Q3 – Planning an Audit"

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

You're reporting an error for "AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations"

AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability

This question discusses auditors' responsibilities to shareholders and stakeholders, steps to minimize liability risks, and actions in distressed companies.

You're reporting an error for "AAA – Nov 2012 – L3 – SB – Q6 – Auditor’s Legal Liability"

AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms

Identifies the requirement for documenting and communicating quality control policies in audit firms.

You're reporting an error for "AAA – Nov 2012 – L3 – AII – Q17 – Quality Control in Audit Firms"

AA – May 2022 – L2 – SB – Q3 – Planning an Audit

Discuss the benefits of audit planning, importance of maintaining audit quality, and procedures auditors should establish to ensure audit quality.

You're reporting an error for "AA – May 2022 – L2 – SB – Q3 – Planning an Audit"

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

You're reporting an error for "AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations"

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