Question Tag: Management Responsibility

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AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors

Outline audit report matters per CAMA, auditor’s rights, and management's financial responsibilities.

Question

Your audit firm was recently appointed as the external auditors of a fast-growing fast-food outlet, Foods Only Limited. The directors are not clear as to their responsibilities and the nature of their relationship with the external auditors. The engagement partner has instructed you to visit the client and explain to the directors some fundamental aspects of the appointment.

Required:

a. Explain the matters to be stated in an audit report according to Companies and Allied Matters Act (CAMA) 2020. (5 Marks)

b. State the auditor’s rights under Companies and Allied Matters Act (CAMA). (5 Marks)

c. State the duties of external auditors under Companies and Allied Matters Act (CAMA). (5 Marks)

d. What are the responsibilities of management and those charged with governance in relation to the accounting function of the company? (5 Marks)

Answer

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Tags: Audit Compliance, Auditor's Report, Auditor's Rights, CAMA, ISA 200, Management Responsibility
Level: Level 2

Topic: The Role and Responsibilities of Auditors
Series: MAY 2023

AA – Nov 2016 – L2 – Q4 – Audit Documentation

This question covers the need for a letter of representation, its content, and steps to be taken when management refuses to sign the letter.

Question

Polyet Nigeria Plc is into the manufacture of plastic materials. It has its factory in Apapa, Lagos, with distribution outlets spread across the country. A new Managing Director, Mr. KO has just been appointed. Shortly after the new Managing Director was appointed, your firm concluded the audit of the Company’s Financial Statements. A request was made from the newly engaged Managing Director for a letter of representation. He informs you in no uncertain terms that the company engaged you as the auditor to take responsibilities for your audit opinion, and that he is not ready to repeat in writing the information that the Chief Finance Officer, other accounting staff, and himself provided to you during the audit exercise. You tried to explain to him that it is standard practice to request a letter of representation from the Management, but he remained adamant.

Required:
a. Explain the need for the auditor to obtain a letter of representation from the management. (5 Marks)
b. Itemise TEN contents of a Letter of Representation. (10 Marks)
c. What steps should you take as the auditor if the Managing Director still persists in his refusal to sign the letter? (5 Marks)
(Total 20 Marks)

Answer

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Tags: Audit evidence, Letter of Representation, Management Responsibility, Professional Ethics, Refusal to Sign
Level: Level 2

Topic: Audit Documentation
Series: NOV 2016

BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour

Question discusses the five categories of management responsibilities as per Peter Drucker.

Question

State and explain FIVE categories of management’s responsibility as suggested by Peter Drucker.
(10 Marks)

Answer

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Tags: Development, Management Responsibility, Organizing, Performance, Peter Drucker
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2021

BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour

Identify key responsibilities associated with junior managers and supervisors.

Question

Which of the following is associated with junior managers and supervisors in an organisation?
A. Functional responsibilities
B. Efficiency control, quality control, control of waste, avoiding unnecessary spending
C. Co-ordination of activities of subordinates
D. Co-ordination with other work groups and functions
E. Monitoring and control

Answer

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Tags: Junior Managers, Management Responsibility, Supervisors
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2023

BL – Nov 2019 – L1 – SB – Q1b – Partnership Law

Advising on the legal issues of partner liability in a firm suffering loss, and a partner's move for dissolution.

Question

b. Wonderland Enterprises is a firm of four partners, trading in motor vehicle batteries. Mr. Bright was appointed the Managing Partner, while two other partners were appointed Finance Manager and Sales Manager, respectively. The remaining partner, Mr. Blake, did not take part in the firm’s management, but he contributed N2 million to the business just as each of the other partners did.

The firm recorded heavy trading loss during the year which resulted in a debt of N10 million. The three partners in the firm’s management insist that all the four partners must pay the debt equally. Mr. Blake is displeased and has served a notice on the other partners for dissolution of the partnership.

Required:
Advise the partners, stating the legal issues in the matter.

Answer

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Tags: Dissolution of partnership, Liability, Management Responsibility, Partnership Law
Level: Level 1

Topic: Partnership Law
Series: NOV 2019

AA – Nov 2019 – L2 – Q5b – Completion Procedures and Reporting

Discusses authoritative sources for the auditor’s report and explains the importance of management and auditor responsibility paragraphs.

Question

The basic objective of an audit is to form and express an opinion on the financial statements. The tangible means by which the auditor achieves this objective is the Auditors Report that is issued to members of the company after the completion of the audit.

Required:
i) Discuss TWO (2) authoritative sources which govern the form and content of the auditor’s report to members. (4 marks)
ii) Explain the essence or importance of Management Responsibility and Auditor’s Responsibility paragraphs in the auditor’s report. (6 marks)

Answer

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Tags: Audit opinion, Auditor Responsibility, Auditor's Report, ISA 700, ISA 701, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2019

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

Question

The audit engagement team of which you are a member, for the audit of Survival Ltd, has almost completed the audit of the financial statements for the year ended 31 October 2019. You have been told that your firm will need to obtain a letter of representation from management as part of the audit evidence needed to form an opinion on the financial statements.

Required:
i) Outline FOUR (4) reasons why your audit firm needs to obtain a letter of representation before the audit report is signed.
(6 marks)

ii) Outline TWO (2) factors you will consider determining the adequacy of management representation as audit evidence.
(4 marks)

Answer

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Tags: Audit evidence, Audit report, ISA 580, Letter of Representation, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2020

AA – May 2021 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

State preconditions for audit engagements and circumstances under which an auditor may refuse an engagement

Question

ISA 210 deals with the Auditor’s responsibility in agreeing to the terms of the audit engagement with management and, where appropriate, those charged with governance. This includes establishing certain preconditions for an audit and responsibilities that rest with management and, where appropriate, those charged with governance.

Required:
i) What THREE (3) preconditions must be established before an audit engagement is accepted? (6 marks)

ii) Under what TWO (2) circumstances will an auditor refuse an engagement? (4 marks)

Answer

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Tags: Audit Engagement, Audit Refusal, ISA 210, Management Responsibility, Preconditions
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2021

AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors

Outline audit report matters per CAMA, auditor’s rights, and management's financial responsibilities.

Question

Required:

a. Explain the matters to be stated in an audit report according to Companies and Allied Matters Act (CAMA) 2020. (5 Marks)

b. State the auditor’s rights under Companies and Allied Matters Act (CAMA). (5 Marks)

c. State the duties of external auditors under Companies and Allied Matters Act (CAMA). (5 Marks)

d. What are the responsibilities of management and those charged with governance in relation to the accounting function of the company? (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Compliance, Auditor's Report, Auditor's Rights, CAMA, ISA 200, Management Responsibility
Level: Level 2

Topic: The Role and Responsibilities of Auditors
Series: MAY 2023

AA – Nov 2016 – L2 – Q4 – Audit Documentation

This question covers the need for a letter of representation, its content, and steps to be taken when management refuses to sign the letter.

Question

Answer

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Tags: Audit evidence, Letter of Representation, Management Responsibility, Professional Ethics, Refusal to Sign
Level: Level 2

Topic: Audit Documentation
Series: NOV 2016

BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour

Question discusses the five categories of management responsibilities as per Peter Drucker.

Question

State and explain FIVE categories of management’s responsibility as suggested by Peter Drucker.
(10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Development, Management Responsibility, Organizing, Performance, Peter Drucker
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2021

BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour

Identify key responsibilities associated with junior managers and supervisors.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Junior Managers, Management Responsibility, Supervisors
Level: Level 1

Topic: Management, Individual, and Organizational Behavior
Series: NOV 2023

BL – Nov 2019 – L1 – SB – Q1b – Partnership Law

Advising on the legal issues of partner liability in a firm suffering loss, and a partner's move for dissolution.

Question

Required:
Advise the partners, stating the legal issues in the matter.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dissolution of partnership, Liability, Management Responsibility, Partnership Law
Level: Level 1

Topic: Partnership Law
Series: NOV 2019

AA – Nov 2019 – L2 – Q5b – Completion Procedures and Reporting

Discusses authoritative sources for the auditor’s report and explains the importance of management and auditor responsibility paragraphs.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit opinion, Auditor Responsibility, Auditor's Report, ISA 700, ISA 701, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2019

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

Question

Required:
i) Outline FOUR (4) reasons why your audit firm needs to obtain a letter of representation before the audit report is signed.
(6 marks)

ii) Outline TWO (2) factors you will consider determining the adequacy of management representation as audit evidence.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit report, ISA 580, Letter of Representation, Management Responsibility
Level: Level 2

Topic: Completion Procedures and Reporting
Series: NOV 2020

AA – May 2021 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

State preconditions for audit engagements and circumstances under which an auditor may refuse an engagement

Question

Required:
i) What THREE (3) preconditions must be established before an audit engagement is accepted? (6 marks)

ii) Under what TWO (2) circumstances will an auditor refuse an engagement? (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Engagement, Audit Refusal, ISA 210, Management Responsibility, Preconditions
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2021

Question Tag: Management Responsibility

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AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors

Outline audit report matters per CAMA, auditor’s rights, and management's financial responsibilities.

You're reporting an error for "AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors"

AA – Nov 2016 – L2 – Q4 – Audit Documentation

This question covers the need for a letter of representation, its content, and steps to be taken when management refuses to sign the letter.

You're reporting an error for "AA – Nov 2016 – L2 – Q4 – Audit Documentation"

BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour

Question discusses the five categories of management responsibilities as per Peter Drucker.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour"

BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour

Identify key responsibilities associated with junior managers and supervisors.

You're reporting an error for "BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour"

BL – Nov 2019 – L1 – SB – Q1b – Partnership Law

Advising on the legal issues of partner liability in a firm suffering loss, and a partner's move for dissolution.

You're reporting an error for "BL – Nov 2019 – L1 – SB – Q1b – Partnership Law"

AA – Nov 2019 – L2 – Q5b – Completion Procedures and Reporting

Discusses authoritative sources for the auditor’s report and explains the importance of management and auditor responsibility paragraphs.

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AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

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AA – May 2021 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

State preconditions for audit engagements and circumstances under which an auditor may refuse an engagement

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AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors

Outline audit report matters per CAMA, auditor’s rights, and management's financial responsibilities.

You're reporting an error for "AA – May 2023 – L2 – SA – Q2 – The Role and Responsibilities of Auditors"

AA – Nov 2016 – L2 – Q4 – Audit Documentation

This question covers the need for a letter of representation, its content, and steps to be taken when management refuses to sign the letter.

You're reporting an error for "AA – Nov 2016 – L2 – Q4 – Audit Documentation"

BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour

Question discusses the five categories of management responsibilities as per Peter Drucker.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q4A – Management, Individual, and Organisational Behaviour"

BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour

Identify key responsibilities associated with junior managers and supervisors.

You're reporting an error for "BMF – Nov 2023 – L1 – SA – Q3 – Management, Individual, and Organisational Behaviour"

BL – Nov 2019 – L1 – SB – Q1b – Partnership Law

Advising on the legal issues of partner liability in a firm suffering loss, and a partner's move for dissolution.

You're reporting an error for "BL – Nov 2019 – L1 – SB – Q1b – Partnership Law"

AA – Nov 2019 – L2 – Q5b – Completion Procedures and Reporting

Discusses authoritative sources for the auditor’s report and explains the importance of management and auditor responsibility paragraphs.

You're reporting an error for "AA – Nov 2019 – L2 – Q5b – Completion Procedures and Reporting"

AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting

Outline reasons for obtaining a letter of representation before signing the audit report.

You're reporting an error for "AA – Nov 2020 – L2 – Q4a – Completion Procedures and Reporting"

AA – May 2021 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

State preconditions for audit engagements and circumstances under which an auditor may refuse an engagement

You're reporting an error for "AA – May 2021 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements"

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