Audit Steps – NBC Institute

AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

Question

The world-wide COVID-19 pandemic disrupted the operations of Divine Hope Limited, like it did to many other business concerns. Sequel to this, the management of Divine Hope Limited has now commissioned the development of a Contingency or Business Continuity Plan to ensure continuity of operations, even if such a pandemic or similar situation should re-occur.

Required:

a. Explain SIX steps to be taken in the information system audit of a Contingency or Business Continuity Plan.
(9 Marks)

b. Explain why the audit of the Contingency or Business Continuity Plan is very necessary.
(6 Marks)

Answer

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Tags: Audit Steps, Business Continuity, Contingency Plan, Necessity of Audit
Level: Level 2

Topic: Emerging Trends in Auditing

AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

Question

In the audit of organizations, auditors often place importance on cash and cash equivalents because of the risk of misstatement associated with them. There have been cases of unreported bank balances and bank accounts opened in the names of organizations and operated secretly without the knowledge of management.

The audit work performed on cash balances will usually depend on materiality considerations. In this context, materiality should be considered not only in terms of the amount in the statement of financial position, but also in terms of the value of individual transactions passing through the cash account during the period.

Required:

a. Explain three risks of misstatement associated with cash and cash balances. (3 Marks)

b. Enumerate and explain six areas covered by a bank confirmation letter. (6 Marks)

c. State and explain five audit steps you will perform after obtaining the confirmation replies from banks. (7 Marks)

d. State and explain four main audit steps involved in a physical count in verifying cash balances. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Steps, Bank Confirmations, Cash Balances, Cash Misstatement Risks
Level: Level 2

Topic: Audit evidence
Series: MAY 2024

AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

Question

Required:

a. Explain SIX steps to be taken in the information system audit of a Contingency or Business Continuity Plan.
(9 Marks)

b. Explain why the audit of the Contingency or Business Continuity Plan is very necessary.
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Steps, Business Continuity, Contingency Plan, Necessity of Audit
Level: Level 2

Topic: Emerging Trends in Auditing

AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

Question

Required:

a. Explain three risks of misstatement associated with cash and cash balances. (3 Marks)

b. Enumerate and explain six areas covered by a bank confirmation letter. (6 Marks)

c. State and explain five audit steps you will perform after obtaining the confirmation replies from banks. (7 Marks)

d. State and explain four main audit steps involved in a physical count in verifying cash balances. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Steps, Bank Confirmations, Cash Balances, Cash Misstatement Risks
Level: Level 2

Topic: Audit evidence
Series: MAY 2024

Question Tag: Audit Steps

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AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

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Question Tag: Audit Steps

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AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

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AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

You're reporting an error for "AA – May 2024 – L2 – SA – Q2 – Audit Evidence"

AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing

Information system audit steps for a business continuity plan and its importance.

You're reporting an error for "AA – Nov 2023 – L2 – Q5 – Emerging Trends in Auditing"

AA – May 2024 – L2 – SA – Q2 – Audit Evidence

This question focuses on the risks of cash misstatements, bank confirmations, and audit procedures for verifying cash and cash balances.

You're reporting an error for "AA – May 2024 – L2 – SA – Q2 – Audit Evidence"

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