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discuss about the materialityan item can be considered material if its omission would reasonably influence the decisions of an addressee of report a
walk-through tests - auditorbull walk-through tests -that is tracing one or more transactions by accounting system and observing application of
state about the audit plan contents1 report requirements and terms of reference2 a review of business and financial position reviewing why changes
explain the concepts of planning the work determine scope and objective of the audit to verify assets to check adequacy of internal controls etc
explain the major types of audit plansthree major types of audit plansstrategic -this the long term forward looking audit it continually gets updated
what is planninginternal auditors must plan the audit work so as to perform the audit in an effective mannerthere must be sufficient audit programmes
examine about the risk-based auditinga risk based audit will be reviewing the risk management process and considering main risks of the organisation
illustrations of substantive tests agree a sample of wages payments to the existence of these individuals and personnel records agree a sample of
what is substantive tests or transactions based auditingtests to attain audit evidence to detect material misstatements in financial statements using
alternative summarised version of tests of controls middot segregation of duty staff records are separate from wages departmentmiddot documentation
state the factors of tests of controls tests of controls may includemiddot enquiriesand observationscorroborating internal control functions
state the examples of tests of controls check bank reconciliation has been reconciled as approved by chief accountant observe buyer checking the
determine about the systems based audit systems based audit is useful as it would help identify risks within the processes in an organisation and
what is the meaning of deviationsdeviations must be recorded and investigated regardless of the amount involved and then assess whether deviations
tests of controlor systems based auditingtests to obtain audit evidence about effective operation of the accounting and internal control systems it
nick leeson and baringsleeson was the trader who managed to bring about the collapse of barings bank in 1995 the main reason he was able to do this
what are the specefic control procedures of benchmarkingspecific control procedures must be in place which includeo organisational structure clear
explain about the internal controls of benchmarking comprises control environment and control procedures it includes all the procedures internal
what are the internal audits internal audit is seen as independent from management who are devising and implementing internal controls and must be
determine about the risk management systemsmanagement must report to board their review and implementation of internal controls and risk management
what are the drawbacks of benchmarking- benchmarking systems and programmes can be costly and time consuming- diversity and complexity of
explain the benefits of benchmarking- better understanding of business competition and customers- improves business performance and discourages
state a process for benchmarking1 gain senior management commitment to establish benchmarking as a process within the organisation and educate
explain the factors which company should applycompanies to be the very best must establish what competition is doing set the very best standards to
determine about the strategic benchmarkingcomparison in terms of an organisations strategic choices made to the most successful market leader for