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banks featuresa profit and loss account when looking at a banks profit and loss account the accountant should seek to discover what proportions of
banksthe authoritative documents arethe central bank of kenya act the companies act cap 486ias 30 disclosure in the financial statements of banks and
current audit filethe current audit file might include inter aliaa a copy of the audited financial statements and any report prepared as a result of
permanent audit filethe permanent audit file might include inter aliaa a copy of the enterprises statutes and other legal or statutory documents
statistical techniquesfactors to be taken into consideration before adopting statistical techniquesa the number of clients to whom it is appropriate
statistical sampling ndash advantagesa it is scientific and defensibleb it provides a precise mathematical statement about probabilities of being
judgmental samplingthe judgement sampling is where auditor using his own experience and awareness of the clients business and situations selects the
audit samplingisa 530 audit sampling and other selective testing procedures states audit sampling is the application of a compliance or substantive
action if management refuses to provide representationsif management refuses to provide a representation that the auditor considers essential this
reference to an expert in auditorrsquos reportwhen issuing an unmodified auditorrsquos report the auditor must not refer to the work of the expert
procedures in computing the work of the expertthe auditor must obtain reasonable assurance that the experts work constitutes appropriate audit
staples inc has operating leases assuming a discount rate of 9 adjust the current balance sheet for the presences of these leases which reported
communication with the expertif the auditor intends to use the work of an expert then he must communicate with the expert well in advance to confirm
forms of evidencea observation is usually witnessing internal control and book-keeping procedures it includes attendance at wages pay out observation
techniques of obtaining evidenceisa 500 mentions them asa inspection of records or documents b inspection of tangible assets c observation d inquiry
relevancethe auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information
sufficiency of audit evidencethe audit evidence should in total enable the auditor to form an opinion on the financial statements sufficiency is a
the concept of audit evidenceauditing is an evidence gathering exercise it is an exercise carried out to confirm the assertions made by the
systems based audit approachthe basis of ias 400 risk assessment and internal controlthe term systems audit refers to the typical audit approach to
audit risk and business riskwe saw in earlier studies that audit risk is often categorized as the product of inherent risk control risk and detection
companies modes of operationsome companies especially small ones operate without any overtly expressed plan and simply carry out the business as
1a business man strated business with 100million on the bank account obtained as a retirement package 2he used part of the money and bought a
business risk analysisbusiness risk can be analyzed between external and internal risksexternal riskschanging legislation eg minimum wagechanging
the business risk approach to auditingin recent years the broader concept of business risk has been developed by the larger firms it was the subject
business risk approachthis approach requires the auditor to determine what are the very important business risks which the client faces this line of