Audit documentation – Questions and Answers

Subject Title: Auditing and Assurance Revision Kit

Topic: Audit documentation

QUESTION 1
December 2022 Question Four B
ISA 230 (Audit Documentation), requires auditors to prepare audit documentation for an audit of financial statements on a timely basis.

Required:
Describe FOUR benefits of documenting audit work. (4 marks)

QUESTION 2
August 2022 Question Four A
Your firm is in the process of auditing a client dealing in actuarial services. Your audit team lacks sufficient expertise in the field of actuarial services. In this regard, the Audit Manager has recommended engaging a management expert as a source of audit evidence. You are also required to maintain the working papers for the exercise.

Required:
(ii) Evaluate four features of the audit working papers that you would be required to maintain. (4 marks)

QUESTION 3
January 2022 Question One B
In line with ISA 220 “Quality Control for an Audit of Financial Statements”, describe four responsibilities of an audit supervisor in relation to supervising and reviewing the audit assistant’s work during an audit. (4 marks)

QUESTION 4
January 2022 Question Two B
Explain the following terms:
(i) Peer review. (2 marks)
(ii) Hot review. (2 marks)

QUESTION 5
December 2021 Question One C
International Standards on Auditing (ISA) 230 – Audit Documentation’ requires that there should be adequate documentation of the work done to support the opinion expressed on the financial statements.

Required:
Discuss four reasons why the auditor should maintain detailed audit working papers.
(8 marks)
QUESTION 6
November 2020 Question One B
International Standard on Auditing (ISA) 315 — Identifying and assessing the risks of material misstatement through understanding the entity and its environment, sets out matters that should be documented during the planning stage of an audit.

Required:
Highlight six matters that should be documented when developing an audit plan.
(6 marks)
QUESTION 7
November 2020 Question One C
International Standard on Auditing (ISA) 230 — Audit Documentation, provides guidance to auditors in respect of audit working papers.

Required:
Summarise six factors which could affect the form and content of audit working papers.
(6 marks)
QUESTION 8
May 2019 Question Three B
Examine four contents of working papers in circumstances where the auditor has used analytical procedures assubstantive tests in carrying out his audit engagement. (4 marks)

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