Contemporary and emerging issues in audit – Questions and Answers

Subject Title: Auditing and Assurance Revision Kit

Topic: Contemporary and emerging issues in audit

QUESTION 1
December 2021 Question Five B
E-commerce is the buying and selling of goods online. Propose five elements of inherent risks associated with operating an E-Commerce platform. (5 marks)

QUESTION 2
December 2021 Pilot Papers Question Two A and B
Data analytics has been described as one of the modern ways of analysing data in various professional fields.

Required:
(a) Explain how auditors can use data analytic techniques during the audit process.
(10 marks)
(b) Highlight the challenges that the auditors will encounter when using data analytics during the course of the audit. (10 marks)

QUESTION 3
December 2021 Pilot Papers Question Five B
Explain the procedures that an auditor would carry out when performing an environment audit of a sugar manufacturing company. (5 marks)

QUESTION 4
November 2018 Question Five B
With respect to information technology (IT) audits, explain the following terms:
(i) Social media risk assessment. (2 marks)
(ii) Software licence review. (2 marks)
(iii) IT governance audit. (2 marks)
(iv) IT risk assessment audit. (2 marks)

QUESTION 5
May 2018 Question Two B
Explain the following terms as used in contemporary audit:
(i) Cyber insurance. (2 marks)
(ii) Social engineering. (2 marks)
(iii) Data protection. (2 marks)
(iv) Remediation procedures. (2 marks)
(v) Forensic accounting (2 marks)

QUESTION 6
November 2017 Question Two A
Explain the following terms as used in contemporary audit:
(i) Environmental audit. (2 marks)
(ii) Corporate governance. (2 marks)
(iii) Enterprise risk management (ERM). (2 marks)

QUESTION 7
September 2015 Question Four C
Knowledge of the business is crucial in determining the most effective and efficient audit strategy of an entity using the internet for electronic commerce. Any auditor needs to have an in-depth understanding of the related risks and the measures to minimise them.

Required:
Discuss the impact of e-commerce on the audit process. (8 marks)

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