Questions

17 JUNE 2013
QUESTION OF THE DAY

You are the assignment partner for for FILIA company which is a new audit client and you preparing for the assignment.

(a) What are the major areas of knowledge you need about the business of FILIA at this stage?
(b) How will you obtain the knowledge needed about the business of FILIA?
Send your answers in word or pdf format file to: infopureschool@gmail.com
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10 JUNE 2013
QUESTION OF THE DAY

You are conducting induction course for new audit trainees and have presented discussion on Overall Audit Strategy and Audit plan. The trainees seem confused about what is the difference between the two items.

Required:

a) Explain to the trainees the differences between the overall audit strategy and the audit plan;

b) What are included in the audit plan?
Send your answers in word or pdf format file to: infopureschool@gmail.com
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7 JUNE 2013
QUESTION OF THE DAY

The audit committee of ASK Company Ltd has approached you to be nominated at next AGM to be appointed as the company auditor. What are the ethical, legal and practical issues you should consider before accepting to be nominated?
Send your answers in word or pdf format file to: infopureschool@gmail.com

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6 JUNE 2013
QUESTION OF THE DAY

You are working in an audit firm and was recently promoted to assistant manager.
You have been returning from work late since Monday and your younger brother is worried what is keeping you late at work and accost you this morning about his worries and you informed him that you are planning for a new audit assignment. Your brother remarked that you have been doing audit for some years so why should you plan this assignment. Is the remarks of your brother justified?
Send your answers in word or pdf format file to: infopureschool@gmail.com
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5 JUNE 3013
QUESTION OF THE DAY

Data System Ltd is a new private company established. Seven member board of directors has been set up including you as the financial management expert. At the first board meeting, members wanted to know the following from you as expert.
 (a) what constitute proper books of accounts to be kept by Data System Ltd?
 
(b) Who qualifies to be appointed the auditor of Data System Ltd?
(c) How is the appointment and fixing of remuneration of auditors done?
(d) Briefly explain the five professional principles of auditors;
(e) What are some of the issues that can threat the independence of the auditor?
Send your answers in word or pdf format file to: infopureschool@gmail.com
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3 JUNE 2013
QUESTION OF THE DAY

Salt & Pepper is an audit firm which has been appointed the auditors of Yarko Company at the last annual general meeting. You are an employee of the audit firm and has been selected as the Audit Manager for Yarko audit assignment. You just returned from the Head Office of Yarko Company where together with the Assignment Partner, you discussed the assignment. The Assignment partner has asked you to prepare the Engagement Letter to be sent to Yarko Company.

(a) What are the things you will include in the letter?
(b) Why is it necessary to send Engagement Letter to Yarko Company after you have discussed the engagement personally?
Send your answers in word or pdf format file to:  infopureschool@gmail.com
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28 May 2013

MINI CASE STUDY

Yeplan is a manufacturing private company owned by the Asante family. The company is only four years old and starting making profit at the end of the just ended financial year. Mr. Awotwi is the Managing Director (MD) since the inception of the business. The five year strategic plan of Yeplan paints a bright future and major expansions are expected to take place. During the last Board of directors meeting of the company, the board decided that the company will be having statutory audit starting this year. The audit is estimated to cost around 20,000 – 30,000. Mr. Awotwi is back from the board meeting  and is furious about the statutory audit decision. He believes Yeplan is too young to start having statutory audit; moreover the company is a family-held private company. Mr. Awotwi said; “We have internal auditors who are working effectively, why should we pay so much money for external audit?”

You have been the Finance Manager of Yeplan Company for three years now. Please explain the following to your MD:

1) Why the need for the statutory audit;
2) The objectives of auditing;
3) The limitations of audit;
4) The difference between the Internal Auditor and External Auditor and;
5) Who is disqualified to be an auditor of Yeplan.
Send your answers in word or pdf format file to: infopureschool@gmail.com
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