i think the first part is answered correctly (the scope of internal audit)
i
----- Original Message ----
From: Aamir Nazeer <aamir1_boy@yahoo.com>
To: International_Accounting_Standards@yahoogroups.com; accounting_accountants_group@yahoogroups.com; QuickBooks@yahoogroups.com
Sent: Saturday, December 23, 2006 11:30:57 AM
Subject: [International_Accounting_Standards] please please please!!! help required auditing paper
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From: Aamir Nazeer <aamir1_boy@yahoo.
To: International_
Sent: Saturday, December 23, 2006 11:30:57 AM
Subject: [International_
Hi,
Below is my matter i am in trouble please help me regarding below matter i am waiting for you quick reply
MATTER:-
In December 2006 attempt of my CAT exams i found a question in Paper 8(INT) (Implementing Audit Procedures) that,
"Identify FOUR activities in which the internal audit department of a company, operating a supermarket
chain, may be typically involved;
For each activity identified above, provide a practical example."
it was a weightage of 8 marks i was confused whether it was asking to write a control activities such(Performance Review, Information Processing, Physical Controls, Segregation of Duties , and Authorisation) remember control activities are part of internal controls as per IAS 315 and others also such as Control Environment, Entity's Risk Assessment Process, Information Systems and Monitoring Of Controls.
But in exam Answer to Question i wrote it's answer linked with Scope and Functions Of Internal Audit Department.The answer i gave was
1)Review economy, efficiency, and effectiveness, in the utalisation of entity's resources.
2)Investigate Frauds.
3)Review Financial and Operationg data.
4)Review Internal Controls and accounting system
5)Review Compliance with applicable laws and regulations
I want to confirm whether i was write in stating that please tell me because i am feeling mental stress regarding my answer
Also one more question
A huge senario was given
"Paphos Co trades as a department store. It has 85 employees, some of whom are hourly paid, and a large
administration and accounts department with appropriate segregation of duties, supervisory controls and authorisation
levels throughout the various accounting functions.
Your firm is auditing the company's financial statements for the year ended 30 September 2006 and, together with
an inexperienced audit junior, you have been assigned to the audit of wages. The company pays all employees on a
weekly basis, using a computerised payroll system to process wages, prior to making payment directly into employees'
bank accounts. Wages costs are reported as $1·62 million in the financial statements of Paphos Co for the year ended
30 September 2006.
You are about to commence tests of control on the wages system. However, from discussions with the audit junior, it
is apparent that he does not understand the concept of obtaining evidence to verify the assertions made implicitly or
explicitly by management and contained in a company's financial statements. Similarly, he does not understand that
there are several recognised methods that an auditor may adopt when selecting a sample of items to be tested from
a population."
Required:
(a) State FOUR financial statement assertions made by the directors of Paphos Co, in reporting wages costs of
$1·62 million in the financial statements of the company for the year ended 30 September 2006.
(6 marks)
i wrote the answer as
Completion:-
there are no unrecorded assets or liabilities, events and transactions( that is the assets, liabilities, events and transactions are not understated) .
Occurrence:-
the events or transactions have ocurred during the relevant accounting period(that is occured in current accounting period- this relates to cut offs)
Measurement: -
the events or transactions are recorded at correct amount in proper period
Presentation and Disclosure:-
presentation and disclosure must be in accordance with relevant legislations and accounting standards.
PLEASE TELL ME THAT WAS I CORRECT AND GAVE ANSWERS WITH RELEVENCE
also for a full view of paper following link may be helpful remenber it is december 2006 paper of International stream
link is
i am waiting for quick reply please reduce my mental stress
Regards
Muhammad Amir
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