Final Audit – NBC Institute

AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

Question

deadlines. The auditors will carry out an interim audit during the period under review followed by a final audit shortly after the year-end. Work at the interim audit will often include obtaining audit evidence about the operating effectiveness of controls.

Required:

(i) Describe the impact on the final audit of performing work on internal controls at an interim audit. (2 marks)

(ii) Assuming an interim audit has taken place and work on internal controls was carried out, list the factors the auditor should consider when deciding how much more work is needed at the final audit in relation to internal controls. (4 marks)

Answer

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Tags: Audit evidence, Audit Planning, Final Audit, Interim Audit, Internal Controls
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2016

AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

Question

Distinguish between interim audit and final audit, identifying TWO advantages and disadvantages of each. (5 marks)

Answer

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Tags: Advantages, Disadvantages, Final Audit, Interim Audit
Level: Level 2

Topic: Types of Audit and Assurance Engagements
Series: NOV 2016

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

Question

i) The external audit process for large entities generally involves two or more phases. One phase involves understanding the business and risk assessment, determining the response to assessed risk, testing of controls, and a limited amount of substantive procedures. This phase is sometimes known as the interim audit. Another phase involves further tests of controls and substantive procedures, as well as audit finalization procedures. This phase is sometimes known as the final audit.

Required:
Describe and explain the main audit procedures and processes that take place during the interim and final audit of a large entity. (10 marks)

Answer

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Tags: Audit Procedures, Final Audit, Interim Audit, Risk Assessment, Substantive Procedures
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2018

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

Question

a) You are the Audit Manager in charge of the audit of Adepaye Ltd (Adepaye) for the year ended 30 April 2016 and you are currently planning the year-end audit. Adepaye specialises in the sale of provisions at its head office. The company has opened branches in Ofankor Barrier, Makola, Nanakrom, Kasoa, and Kanda within ten years of incorporation. During the interim audit, you noted that due to the present economic challenges in Ghana, the company has suffered increases in costs. Also, the presence of competitors is driving the sales prices of the company downward, affecting the profitability of the company.

Furthermore, the company has not recorded profit for over five years, thus threatening the going concern of the company. Due to the consistent cash flow challenges, the company has financed its operations with bank overdrafts and huge long-term loans as part of its capital structure.

In a discussion with management and those charged with governance during the interim audit, you were informed that the company plans to improve the customer relationship management of its operations to maintain its market share. The company has asked its bank for a loan to finance its working capital. This they believe would improve the liquidity of the company.

The company has prepared a cash flow forecast for five years from the end of the reporting year 30 April 2016 to support its bank loan request. The internal audit department has reported on the forecast to the board of directors. However, the bank has said it would like a report from the external auditors to confirm the reasonableness of the forecast amidst the current challenges in Ghana after their final audit.

The company has approached your firm to examine the cash flow forecast and then to report to the bank.

Required:
i) Explain TWO (2) differences in audit approach that the Audit Manager would adopt during the interim audit and the final audit.
(6 marks)
ii) Explain FIVE (5) factors you will consider before placing reliance on the work of the internal auditors of Adepaye Ltd.
(10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Final Audit, Interim Audit, Internal Audit, Risk Assessment
Level: Level 2

Topic: Audit and Assurance Risk Environment
Series: MAY 2019

AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

Question

Required:

(i) Describe the impact on the final audit of performing work on internal controls at an interim audit. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Planning, Final Audit, Interim Audit, Internal Controls
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2016

AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

Question

Distinguish between interim audit and final audit, identifying TWO advantages and disadvantages of each. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Disadvantages, Final Audit, Interim Audit
Level: Level 2

Topic: Types of Audit and Assurance Engagements
Series: NOV 2016

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

Question

Required:
Describe and explain the main audit procedures and processes that take place during the interim and final audit of a large entity. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Final Audit, Interim Audit, Risk Assessment, Substantive Procedures
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2018

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

Question

The company has approached your firm to examine the cash flow forecast and then to report to the bank.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Final Audit, Interim Audit, Internal Audit, Risk Assessment
Level: Level 2

Topic: Audit and Assurance Risk Environment
Series: MAY 2019

Question Tag: Final Audit

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AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

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Question Tag: Final Audit

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AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

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AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

You're reporting an error for "AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements"

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

You're reporting an error for "AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements"

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

You're reporting an error for "AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment"

AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

This question examines how performing an interim audit impacts the final audit, especially regarding internal controls and factors affecting additional audit work.

You're reporting an error for "AA – May 2016 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements"

AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements

Compare and contrast interim and final audits, listing two advantages and disadvantages of each.

You're reporting an error for "AA – Nov 2016 – L2 – Q1c – Types of Audit and Assurance Engagements"

AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements

Describes key audit procedures performed during the interim and final audit phases for large entities.

You're reporting an error for "AA – May 2018 – L2 – Q3a – Planning and Approach for Audit and Assurance Engagements"

AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment

Explains differences in audit approach between interim and final audit and discusses factors for relying on internal auditors' work.

You're reporting an error for "AA – May 2019 – L2 – Q2a – Audit and Assurance Risk Environment"

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