Documentation – NBC Institute

AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting

This question tests understanding of the primary purpose of audit working papers.

Question

The primary purpose of audit working papers is to
A. Support the underlying concepts included in the preparations of the basic financial statements
B. Aid the auditors in adequately planning their work
C. Aid the auditors in adequately circularising the client’s debtors
D. Provide a point of reference for future audit engagements
E. Identify area of weaknesses so as to conduct extended substantive and compliance tests

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Audit Working Papers, Documentation
Level: Level 3

Topic: Audit Reporting
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

AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics.

Identifies the documentation that aids in understanding the internal control system.

Question

To obtain an understanding of the internal control system, which ONE of the following computer documentations can assist the auditor?

A. System narrative
B. System flowchart
C. System counts
D. Record layout
E. Programme listing

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Documentation, Internal Control, System Flowchart
Level: Level 3

Topic: Audit of IT Systems and Data Analytics
Series: NOV 2011

AA – May 2021 – L2 – Q5 – Audit Evidence

Explanation of sufficient and appropriate audit evidence, factors in deciding audit evidence amount, auditor actions on inadequate evidence, and audit documentation rationale.

Question

JAK Professional Services is a member firm of James Candle International in Cayman Islands. The member firm’s practice review exercise has just been concluded. As part of the global firm, practice reviews are done yearly on selected engagement files where member firms review one another. Some of the issues included in the review notes raised on JAK Professional Services audit files are as follows:

i. Lack of sufficient and appropriate audit evidence regarding audit of cash and bank as well as inventory balances. This was partly due to the fact that no evidence existed in the file regarding physical cash and inventory count which were material;

ii. No proper documentation of confirmation replies received from banks, receivables, and solicitors;

iii. No cash flow working documentation to show how the figures on the cash flow statements in the financial statements were arrived at;

iv. Improper documentation of how expected credit loss on financial instruments in the financial statements were arrived at; and

v. Figures in the financial statements could not be traced to the respective working papers.

As an experienced auditor, some of the trainees were not impressed about the report and have approached you for clarification.

You are required to explain:

a. Meaning of ‘sufficient and appropriate audit evidence’ (5 Marks)
b. Factors to be considered when deciding amount of audit evidence needed (4 Marks)
c. What auditors should do in case of inadequate audit evidence (5 Marks)
d. Reasons for sufficient and appropriate audit documentation (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Documentation, Quality control
Level: Level 2

Topic: Audit Documentation, Audit evidence
Series: MAY 2021

BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking

Objective question on the document used by insurers to gather information for insurance contracts.

Question

14. The document issued by the insurer to obtain material information that will form the basis of a contract of insurance is
A. Insurance policy
B. Proposal form
C. Insurance paper
D. Information document
E. Agreement paper

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Basis, Documentation, Insurance, Proposal Form
Level: Level 1

Topic: Law Relating to Banking
Series: NOV 2020

AA – May 2017 – L2 – SC – Q6 – Audit Documentation

Explanation of audit documentation purpose, and distinction between permanent and current audit files.

Question

ISA 230 requires the Auditor to prepare documentation on a timely basis, sufficient to enable an experienced auditor, with no previous connection with the audit, to understand significant matters arising during the audit and the conclusions reached thereon.

You are required to:

(a) Explain THREE reasons for preparing audit working papers. (3 Marks)
(b) State FIVE other purposes of audit documentation. (5 Marks)
(c) List FIVE items of information that might be included in the Permanent Audit File. (5 Marks)
(d) Explain what differentiates the Permanent Audit File from the Current Audit File. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Working Papers, Current File, Documentation, ISA 230, Permanent File
Level: Level 2

Topic: Audit Documentation
Series: MAY 2017

AA – Nov 2019 – L2 – Q5 – Audit Documentation

Discuss the archiving of audit working papers, their purposes, types, contents, and ownership conditions.

Question

Your firm has just recruited some audit trainees. It is the practice of the firm to give orientation to the newly recruited so that they could be familiar with the firm’s operations, especially before the commencement of an audit busy season.

As an audit senior in the firm, you have been directed to facilitate the programme for the newly hired trainees. You were allocated a topic on the archiving and retrieval of audit documents for a current year audit.

Required:
Based on your experience over the years, discuss:
a. Audit working paper archiving (1 Mark)
b. The purposes of audit working papers archiving (6 Marks)
c. The types, contents, and importance of audit working paper files (8 Marks)
d. The owner of audit working paper files and the conditions under which access to them could be granted to a third party (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Archiving, Audit Processes, Audit Working Papers, Documentation
Level: Level 2

Topic: Audit Documentation
Series: NOV 2019

BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business

Identifying a non-key component of a business report.

Question

Which of the following is NOT a key component of a business report?
A. Reader
B. Conveyance
C. Objective
D. Subject
E. Structure

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Reports, Documentation, Report Writing
Level: Level 1

Topic: Communications in Business
Series: MAR/JULY 2020

AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting

This question tests understanding of the primary purpose of audit working papers.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Audit Working Papers, Documentation
Level: Level 3

Topic: Audit Reporting
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

AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics.

Identifies the documentation that aids in understanding the internal control system.

Question

To obtain an understanding of the internal control system, which ONE of the following computer documentations can assist the auditor?

A. System narrative
B. System flowchart
C. System counts
D. Record layout
E. Programme listing

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Documentation, Internal Control, System Flowchart
Level: Level 3

Topic: Audit of IT Systems and Data Analytics
Series: NOV 2011

AA – May 2021 – L2 – Q5 – Audit Evidence

Explanation of sufficient and appropriate audit evidence, factors in deciding audit evidence amount, auditor actions on inadequate evidence, and audit documentation rationale.

Question

ii. No proper documentation of confirmation replies received from banks, receivables, and solicitors;

iii. No cash flow working documentation to show how the figures on the cash flow statements in the financial statements were arrived at;

iv. Improper documentation of how expected credit loss on financial instruments in the financial statements were arrived at; and

v. Figures in the financial statements could not be traced to the respective working papers.

As an experienced auditor, some of the trainees were not impressed about the report and have approached you for clarification.

You are required to explain:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Documentation, Quality control
Level: Level 2

Topic: Audit Documentation, Audit evidence
Series: MAY 2021

BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking

Objective question on the document used by insurers to gather information for insurance contracts.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Basis, Documentation, Insurance, Proposal Form
Level: Level 1

Topic: Law Relating to Banking
Series: NOV 2020

AA – May 2017 – L2 – SC – Q6 – Audit Documentation

Explanation of audit documentation purpose, and distinction between permanent and current audit files.

Question

You are required to:

(a) Explain THREE reasons for preparing audit working papers. (3 Marks)
(b) State FIVE other purposes of audit documentation. (5 Marks)
(c) List FIVE items of information that might be included in the Permanent Audit File. (5 Marks)
(d) Explain what differentiates the Permanent Audit File from the Current Audit File. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Working Papers, Current File, Documentation, ISA 230, Permanent File
Level: Level 2

Topic: Audit Documentation
Series: MAY 2017

AA – Nov 2019 – L2 – Q5 – Audit Documentation

Discuss the archiving of audit working papers, their purposes, types, contents, and ownership conditions.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Archiving, Audit Processes, Audit Working Papers, Documentation
Level: Level 2

Topic: Audit Documentation
Series: NOV 2019

BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business

Identifying a non-key component of a business report.

Question

Which of the following is NOT a key component of a business report?
A. Reader
B. Conveyance
C. Objective
D. Subject
E. Structure

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Reports, Documentation, Report Writing
Level: Level 1

Topic: Communications in Business
Series: MAR/JULY 2020

Question Tag: Documentation

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting

This question tests understanding of the primary purpose of audit working papers.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting"

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"

AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics.

Identifies the documentation that aids in understanding the internal control system.

You're reporting an error for "AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics."

AA – May 2021 – L2 – Q5 – Audit Evidence

Explanation of sufficient and appropriate audit evidence, factors in deciding audit evidence amount, auditor actions on inadequate evidence, and audit documentation rationale.

You're reporting an error for "AA – May 2021 – L2 – Q5 – Audit Evidence"

BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking

Objective question on the document used by insurers to gather information for insurance contracts.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking"

AA – May 2017 – L2 – SC – Q6 – Audit Documentation

Explanation of audit documentation purpose, and distinction between permanent and current audit files.

You're reporting an error for "AA – May 2017 – L2 – SC – Q6 – Audit Documentation"

AA – Nov 2019 – L2 – Q5 – Audit Documentation

Discuss the archiving of audit working papers, their purposes, types, contents, and ownership conditions.

You're reporting an error for "AA – Nov 2019 – L2 – Q5 – Audit Documentation"

BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business

Identifying a non-key component of a business report.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business"

AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting

This question tests understanding of the primary purpose of audit working papers.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q4 – Audit Reporting"

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"

AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics.

Identifies the documentation that aids in understanding the internal control system.

You're reporting an error for "AAA – Nov 2011 – L3 – SA – Q20 – Audit of IT Systems and Data Analytics."

AA – May 2021 – L2 – Q5 – Audit Evidence

Explanation of sufficient and appropriate audit evidence, factors in deciding audit evidence amount, auditor actions on inadequate evidence, and audit documentation rationale.

You're reporting an error for "AA – May 2021 – L2 – Q5 – Audit Evidence"

BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking

Objective question on the document used by insurers to gather information for insurance contracts.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q14 – Law Relating to Banking"

AA – May 2017 – L2 – SC – Q6 – Audit Documentation

Explanation of audit documentation purpose, and distinction between permanent and current audit files.

You're reporting an error for "AA – May 2017 – L2 – SC – Q6 – Audit Documentation"

AA – Nov 2019 – L2 – Q5 – Audit Documentation

Discuss the archiving of audit working papers, their purposes, types, contents, and ownership conditions.

You're reporting an error for "AA – Nov 2019 – L2 – Q5 – Audit Documentation"

BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business

Identifying a non-key component of a business report.

You're reporting an error for "BMF – Mar July 2020 – L1 – SA – Q19 – Communications in Business"

Our offerings

Contact Info

Customer

Get In Touch

admin