QUESTION 2 Sunu & Co., a firm of Chartered Accountants and serving as external auditors to Muda Beverages Ltd, are in a meeting with the management of the Client (Muda Beverages Ltd) to deliberate over the draft financial statements. As external auditors, you request that management should explain how an amount of GH¢500,000 for land and building in the financial statements had been arrived at. The Chief Executive Officer (CEO) asked the Finance Director to explain how the amount of GH¢500,000 was arrived at. The Finance Director explained that the amount was given to them by the external valuer, L. Tetteh Valuers. Required: Outline five (5) audit procedures that would be adopted in verifying the land and building value in the financial statements.
QUESTION 2 Sunu & Co., a firm of Chartered Accountants and serving as external auditors to Muda Beverages Ltd, are in a meeting with the management of the Client (Muda Beverages Ltd) to deliberate over the draft financial statements. As external auditors, you request that management should explain how an amount of GH¢500,000 for land and building in the financial statements had been arrived at. The Chief Executive Officer (CEO) asked the Finance Director to explain how the amount of GH¢500,000 was arrived at. The Finance Director explained that the amount was given to them by the external valuer, L. Tetteh Valuers. Required: Outline five (5) audit procedures that would be adopted in verifying the land and building value in the financial statements.
QUESTION 2 Sunu & Co., a firm of Chartered Accountants and serving as external auditors to Muda Beverages Ltd, are in a meeting with the management of the Client (Muda Beverages Ltd) to deliberate over the draft financial statements. As external auditors, you request that management should explain how an amount of GH¢500,000 for land and building in the financial statements had been arrived at. The Chief Executive Officer (CEO) asked the Finance Director to explain how the amount of GH¢500,000 was arrived at. The Finance Director explained that the amount was given to them by the external valuer, L. Tetteh Valuers. Required: Outline five (5) audit procedures that would be adopted in verifying the land and building value in the financial statements.
QUESTION 2 Sunu & Co., a firm of Chartered Accountants and serving as external auditors to Muda Beverages Ltd, are in a meeting with the management of the Client (Muda Beverages Ltd) to deliberate over the draft financial statements. As external auditors, you request that management should explain how an amount of GH¢500,000 for land and building in the financial statements had been arrived at. The Chief Executive Officer (CEO) asked the Finance Director to explain how the amount of GH¢500,000 was arrived at. The Finance Director explained that the amount was given to them by the external valuer, L. Tetteh Valuers.
Required: Outline five (5) audit procedures that would be adopted in verifying the land and building value in the financial statements.
Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.
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