Management letter – NBC Institute

AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

Question

The management of Pony Bank Plc and its wholly owned subsidiary, Ponte Micro Finance Bank Limited, engaged in fraudulent activities involving the arrangement of bogus loans amounting to ₦5.5 billion in worthless assets, which were undetected by the previous auditors. The former auditors attributed the oversight to a well-organized group within Pony Bank that actively deceived and obstructed the audit process to conceal their actions.

Your firm, Vic Viv & Co, has recently taken on the audit of Pony Bank Plc.

Requirements:
a. Advise the engagement partner on the risks involved in taking up the audit.

(4 Marks)
b. Recommend appropriate actions for management and your firm to address financial statement risks.

(8 Marks)
c. Prepare a management letter with two matters suitable for submission to the directors.

(8 Marks)

Answer

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Tags: Audit Planning, Audit Risk, Bogus Loans, Financial Statement Risk, Fraud Detection, Management letter
Level: Level 3

Topic: Risk Management in Audits
Series: NOV 2017

AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

Question

ISA 265 “Communicating Deficiencies in Internal Control to Those Charged with Governance and Management” requires auditors to communicate deficiencies in internal control with management.

Required:
Explain clearly what a management letter is, indicating the contents of such a letter. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Internal Control, ISA 265, Management letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2016

AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

Question

The partner in your firm has requested you to train the newly recruited junior audit staff on ISA 260: Communication with those charged with governance.

Required:
Draft a training material for the new junior recruits on the provisions set out in ISA 260 in relation to:

i) The purpose of issuing a Management Letter to a client after an audit.
(5 marks)

ii) The contents of a Management Letter.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Reporting, Communication, Governance, ISA 260, Management letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2021

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

Question

During an audit engagement, it was observed that the Fixed Assets of BTL Plc were not embossed with a code of identification.

Required:

Draft a management letter relating to the issue above. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Reporting, Fixed Assets, Internal Control, Management letter
Level: Level 3

Topic: Evaluation and review, Reporting
Series: JULY 2023

AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

Question

Your firm, Vic Viv & Co, has recently taken on the audit of Pony Bank Plc.

Requirements:
a. Advise the engagement partner on the risks involved in taking up the audit.

(4 Marks)
b. Recommend appropriate actions for management and your firm to address financial statement risks.

(8 Marks)
c. Prepare a management letter with two matters suitable for submission to the directors.

(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Audit Risk, Bogus Loans, Financial Statement Risk, Fraud Detection, Management letter
Level: Level 3

Topic: Risk Management in Audits
Series: NOV 2017

AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

Question

ISA 265 “Communicating Deficiencies in Internal Control to Those Charged with Governance and Management” requires auditors to communicate deficiencies in internal control with management.

Required:
Explain clearly what a management letter is, indicating the contents of such a letter. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Internal Control, ISA 265, Management letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2016

AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

Question

The partner in your firm has requested you to train the newly recruited junior audit staff on ISA 260: Communication with those charged with governance.

Required:
Draft a training material for the new junior recruits on the provisions set out in ISA 260 in relation to:

i) The purpose of issuing a Management Letter to a client after an audit.
(5 marks)

ii) The contents of a Management Letter.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Reporting, Communication, Governance, ISA 260, Management letter
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2021

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

Question

During an audit engagement, it was observed that the Fixed Assets of BTL Plc were not embossed with a code of identification.

Required:

Draft a management letter relating to the issue above. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Reporting, Fixed Assets, Internal Control, Management letter
Level: Level 3

Topic: Evaluation and review, Reporting
Series: JULY 2023

Question Tag: Management letter

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AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

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Question Tag: Management letter

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AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

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AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

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AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

You're reporting an error for "AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting"

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

You're reporting an error for "AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review"

AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits

Assess audit risks in taking on Pony Bank Plc, recommend management and audit firm actions to address financial statement risks, and draft a management letter.

You're reporting an error for "AAA – Nov 2017 – L3 – Q4 – Risk Management in Audits"

AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting

Explain what a management letter is and describe its contents.

You're reporting an error for "AA – Nov 2016 – L2 – Q5a – Completion Procedures and Reporting"

AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting

Describes the purpose of a management letter and outlines its contents as per ISA 260.

You're reporting an error for "AA – Nov 2021 – L2 – Q5b – Completion Procedures and Reporting"

AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

You're reporting an error for "AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review"

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