PROFESSIONAL ETHICS CHAPTER OBJECTIVE 1. FUNDAMENTAL PRINCIPLES 2. CONFLICT OF INTEREST 3. THREATS TO OBJECTIVITY AND INDEPENDENCE ……………………………………………………………………………………………. 1. FUNDAMENTAL PRINCIPLES The ACCA Code of Ethics and Conduct are detailed below: a. Integrity: straightforward and honest b. Objectivity and independence: fair, not allow prejudice or bias or the influence of others to override objectivity c. Professional competence and due care:
Continue reading STATUTORY AUDITS LEARNING OBJECTIVE 1. THE AUDIT REQUIREMENT AND AUDITOR 2. RESIGNATION AND RETIREMENT OF AUDITOR 3. RIGHTS AND DUTIES ………………………………………………………………………………………… 1. THE AUDIT REQUIREMENT AND AUDITOR Audit Requirement In most countries, not all limited companies are required to have their financial statements audited. Many exemptions may apply to small and medium-sized companies. Appointment of Auditors Appointment of auditors is
Continue reading AUDITING CONCEPTS: TRUE AND FAIR, MATERIALITY CHAPTER OBJECTIVE 1. THE AUDIT REPORT AS A MEANS OF COMMUNICATION 2. TRUE AND FAIR 3. REASONABLE ASSURANCE 4. MATERIALITY 5. ASSESSING MATERIALITY ………………………………………………………………………………………………. 1. THE AUDIT REPORT AS A MEANS OF COMMUNICATION • The External Audit Report A means of written, formal communication between auditor and shareholders in which the auditor expresses an
Continue reading AUDIT PLANNING AND RISK CHAPTER OBJECTIVE 1. AUDIT STRATEGY 2. AUDIT PLAN 3. AUDIT RISK ASSESSMENT 4. UNDERSTANDING THE ENTITY ………………………………………………………………………………………………………………. 1. AUDIT STRATEGY The audit strategy sets the scope, timing and direction of the audit. It allows the auditor to determine the following: The resources to deploy for specific audit areas (e.g. experience level, external experts); The
Continue reading INTERNAL CONTROLS CHAPTER OBJECTIVE I. INTERNAL CONTROL II. COMPONENTS OF INTERNAL CONTROL III. CATEGORIES OF INTERNAL CONTROLS …………………………………………………………………………………………….. I. INTERNAL CONTROL Internal control is the process designed and effected by management and others to provide reasonable assurance about the achievement of the entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable
Continue reading THE AUDIT EVIDENCE PROCESS: TESTS OF CONTROL CHAPTER OBJECTIVE 1. THE CONCEPT OF AUDIT EVIDENCE 2. THE CHARACTERISTICS OF GOOD AUDIT EVIDENCE 3. SUFFICIENT , APPROPRIATE EVIDENCE 4. AUDIT TESTING PROCEDURES ……………………………………………………………………………………………… 1. THE CONCEPT OF AUDIT EVIDENCE Audit evidence can be defined in simple terms as any piece of information which assists the auditor to reach conclusion on the
Continue reading AUDIT -SAMPLING CHAPTER OBJECTIVE 1. AUDIT SAMPLING 2. SAMPLE SIZE 3. SAMPLE SELECTION 4. STATISTICAL AND NON-STATISTICAL SAMPLING 1. AUDIT SAMPLING Definition: Audit sampling as the application of audit procedures to less than 100% of the items (in population) with an account balance or class of transactions. Using Sampling in Auditing: Sampling is normally appropriate for areas in which there
Continue reading AUDIT VERIFICATION- GENERAL PRINCIPLES CHAPTER OBJECTIVE 1. AUDIT VERIFICATION TECHNIQUES 2. AUDIT OBJECTIVES AND FINANCIAL STATEMENT ASSERTION 3. ACCOUNTING ESTIMATES ……………………………………………………………………………………. 1. AUDIT VERIFICATION TECHNIQUES In verification work, the auditor will use substantive testing procedures to give evidence relating to the figures in the financial statements. Audit-testing procedures available to the auditor are: Inspection: Physical review or examination of records,
Continue reading AUDIT VERIFICATION -INVENTORY CHAPTER OBJECTIVE 1. INVETNORY VALUATION 2. INVENTORY COUNT 3. THE AUDITOR’S WORK ON INVENTORY VALUATION ……………………………………………………………………………………………………….. 1. INVENTORY VALUATION Definition: The term inventory includes raw materials, bought in parts, work-in-progress and finished goods. Inventory Valuation: IAS2 inventory requires individual inventories to be measured at the lower of cost and net realisable value. Inventory valuation methods such as
Continue reading AUDIT VERIFICATION – NON-CURRENT ASSETS CHAPTER OBJECTIVE 1. NON-CURRENT ASSETS 2. COST OR VALUATION 3. LEASE AND NON-DEPRECIATION OF NON-CURRENT ASSETS 4. VERIFICATION PROCEDURE 1. NON-CURRENT ASSETS Non-current assets are those assets which are held for continuing use in the business and are not intended for resale. Non-current assets can be analysed as follows. 1. Intangible- have no physical existence. E.g.
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