Answer ALL questions below. QUESTION 1 1.1. Aside from the legal obligation for a company to conduct an audit, briefly identify explain the benefits that entities gain from investing in an audit. 1.2. Briefly outline and explain the inherent limitations of an audit. 1.3. Explain the purpose of conducting an audit. QUESTION 2 2.1 Briefly explain the five (5) main components of internal controls. 2.2. List and explain the benefits to an organisation of having sound internal controls in place. 2.3 Briefly discuss the limitations or drawbacks of internal auditing. QUESTION 3 3.1 What steps should an auditor take when approached by a prospective audit client to determine if the preconditions for an audit are met? 3.2 What activities does the auditor perform during the initial phase of the audit process? 3.3 What are the four (4) types of audit opinions, and how do they differ from one another? 3.4. What are the key reasons an audit firm might choose not to engage with potential clients? QUESTION 4 4.1 What is the difference between sampling and non-sampling risk? 4.2 What are the three (3) main types of statistical sampling techniques, and how are they applied in practice? 4.3 Briefly discuss the advantages of using statistical sampling in auditing. QUESTION 5 What are the five (5) major types of information systems used in business, and how do they function?
Answer ALL questions below. QUESTION 1 1.1. Aside from the legal obligation for a company to conduct an audit, briefly identify explain the benefits that entities gain from investing in an audit. 1.2. Briefly outline and explain the inherent limitations of an audit. 1.3. Explain the purpose of conducting an audit. QUESTION 2 2.1 Briefly explain the five (5) main components of internal controls. 2.2. List and explain the benefits to an organisation of having sound internal controls in place. 2.3 Briefly discuss the limitations or drawbacks of internal auditing. QUESTION 3 3.1 What steps should an auditor take when approached by a prospective audit client to determine if the preconditions for an audit are met? 3.2 What activities does the auditor perform during the initial phase of the audit process? 3.3 What are the four (4) types of audit opinions, and how do they differ from one another? 3.4. What are the key reasons an audit firm might choose not to engage with potential clients? QUESTION 4 4.1 What is the difference between sampling and non-sampling risk? 4.2 What are the three (3) main types of statistical sampling techniques, and how are they applied in practice? 4.3 Briefly discuss the advantages of using statistical sampling in auditing. QUESTION 5 What are the five (5) major types of information systems used in business, and how do they function?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Transcribed Image Text:Answer ALL questions below.
QUESTION 1
1.1. Aside from the legal obligation for a company to conduct an audit, briefly identify explain the
benefits that entities gain from investing in an audit.
1.2. Briefly outline and explain the inherent limitations of an audit.
1.3. Explain the purpose of conducting an audit.
QUESTION 2
2.1 Briefly explain the five (5) main components of internal controls.
2.2. List and explain the benefits to an organisation of having sound internal controls in place.
2.3 Briefly discuss the limitations or drawbacks of internal auditing.
QUESTION 3
3.1 What steps should an auditor take when approached by a prospective audit client to determine
if the preconditions for an audit are met?
3.2 What activities does the auditor perform during the initial phase of the audit process?
3.3 What are the four (4) types of audit opinions, and how do they differ from one another?
3.4. What are the key reasons an audit firm might choose not to engage with potential clients?
QUESTION 4
4.1 What is the difference between sampling and non-sampling risk?
4.2 What are the three (3) main types of statistical sampling techniques, and how are they applied
in practice?
4.3 Briefly discuss the advantages of using statistical sampling in auditing.
QUESTION 5
What are the five (5) major types of information systems used in business, and how do they
function?
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