Review Chapter 1: Audit Documentation (PSP_DAT5Bjune2020)
Welcome to our blog 😊
We are from group 1, DATB
CHAPTER 1: AUDIT DOCUMENTATION
Group members :
1- Muhammad Ashraf bin Mohd Redzwan 10DAT18F1006
2-Thurgeswari Selvemani 10DAT181073
3- Nor Athirah bt Amran 10DAT18F1028
4- Nuralya Sophia bt Suhaidi 10DAT18F1026
5- Nurdiana bt Mohd Nasir 10DAT18F1014
[Ulasan Kumpulan 1 untuk sesi pembelajaran topik 1?]
Never stop learning, because life never stop teaching
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For more information for chapter 1, you guys can read the slide that had been prepared💖💖
https://app.conceptboard.com/board/bm2n-55rb-nd94-1qh9-bioq
QUESTIONS and ANSWER SESSION
please fill the answers in the comment section👍👍
1) Three (3) purposes of audit working papers
2) An auditor needs to keep proper audit documents as evidence for use in the future
a-Explain two (2) advantages of proper audit programme
b- List four (4) contents of working papers
3) What is permanent audit and current audit files? Explain.
THE MORE THAT YOU READ,
THE MORE THINGS YOU WILL KNOW.
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THE MORE PLACES YOU'LL GO.
Comments
-Assists the engagement team in planning and performing the audit
-Enable the team to be accountable for their acts and work
2) a)-Helps in estimation and division of work
-Enable to fix responsibility
b)-Audit programmes
-Lead schedules
-Analysis
-Memorandum
3) ~Permanent Audit Files
- Usually contains documents and matters of continuing importance of client's business which will be required for more than one audit
~Current Audit Files
- Consist of working papers containing information primarily related to the purpose of the current audit
Question 1
1) -Assist in the planning and performance of audit work
-Assist in the supervision and review of audit work
- Record the audit evidence resulting from the audit work
2.a) -Helps to present as a proof
- Helps to make responsible
b) 1)Audit programme
2) Analysis
3) Memorandum
4) Lead schedules
3.Permanent audit: Usually contains document & matters of continuing importance of clients business
Current audit files : Consist of working papers containing information primarily related to the purposes of the current audit
Question 1 - First purpose is provide assurance that the work delegated by the audit partner has been properly completed. The next purpose is very necessary for audit quality control. The third purposes is to detect error and frauds done by the company.
Question 2
a) The first advantage is audit programme saves time and labor. The second advantage is audit programme increases efficiency.
b) The first content is schedule of debtors and creditors. The second is to do statement of depreciation. The third is confirmation by the bank regarding the bank balances of the client. The fourth is detail of cash balance checked.
Question 3 - Permanent audit file contains data that are of continuing audit interest and current audit file contains audit evidence to support the auditor’s report for a particular year.
1. a)Show the audit was properly planned and carried out properly.
b)To support the audit work done in order to provide the assurance that the audit was
performed in accordance.
c)Show the evidence is sufficient and appropriate to support the audit opinion.
2.a)-Helps an auditor in allocation of work among its team members according their skill
-Enhance the accountability of audit team work towards work performed by them
b)-Schedule of debtors and creditors
-Trial balance
-statement of depreciation
-Bank reconciliation statement
3.a) Permanent audit files are the files that use to keep the information that uses by
auditors continuously.
b)Current audit file contain audit evidence to support the auditor's report for the
particular year.
1. - Necessary for audit quality control purposes.
- Assist in the planning and performance of the audit
- Provide evidence that on effective audit has been carried out
2. a) - An audit program helps in ensuring that all-improtant areas are considered while conducting the audit
- Reduces the scope for misunderstanding among team members regarding the perfomance audit work.
b) - Name of client
- Period cover
- Audit firm name
- The fire reference
3. Permenent audit files - usually contains historical data about the client
Current audit files - Information and data reated specifically to current year engagement
Question 1
1)Become a valuable documentary evidence for the auditor.
2)The various minute details and aspects of the audit report can be well substantiated based on the findings summarized in the report.
3)Enable auditor to coordinate and organize the work of audit clerks.
Question 2
a)-helps in ensuring that all-important areas are considered while conducting the audit.
-helps an auditor in the allocation of work among its team members according to their skills and competency.
b)-Schedule of debtors and creditors.
-Trial Balance.
-Certificate of officials regarding certain important matters.
-Statement of depreciation.
Question 3
a)Permanent audit file- to keep the information that uses by auditors continuously. That information includes engagement later, client’s M&A, long term contract or agreement as well as board meeting minute.
b)Current audit file- keep all information related to current year auditing. Those documents include the current year financial statements, general ledger, management accounts, and supporting documents.
QUESTION 1
-The engagement team planning and performing
-Review in carrying out their responsibilities
-The engagement team to demonstrate that the audit work perform properly
QUESTION 2
a)2 ADVANTAGE PROPER AUDIT PROGRAMME
-Supervision of work
-Division of audit work
b)4 CONTENTS OF WORKING PAPERS
-Name of client
-Period cover
-Audit firm name
-The fire refrence
QUESTION 3
Permanent audit
-Meaning permanent audit is permanent file usually contains historical data about the client.
-The purpose is keep information that is relevant for multiple years on recording engagements.
-The content of permanent audit
*minute of board meeting
*lease agreement
*copy of AOA and MOA
*letter of agreements
Current Audit
-The meaning current audit is information and data related specificly to current year engagement.
-The purpose is evidence of the planning process.
-The content of current audit
*Copy of financial statement and audit report
*Audit plan and audit programs.
*Working trial balance
*Journal entries
-Assist in the supervision and review of audit work.
-Check the weakness of internal control.
2) (a) Helps in estimation and division of work and help in future planning.
(b) Grouped account schedules, lead schedules, memorandum, letter of confirmation.
3) Permanent audit files usually contains documents and matters of continuing importance of clients’ business which will be required for more than one audit. Current audit files consist of working papers containing information primarily related to the purposes of the current audit.