Questions from General Auditing

Q: In January 2018, Carillion, a major UK multinational construction and

In January 2018, Carillion, a major UK multinational construction and facilities management company, suddenly collapsed, leaving in its wake almost £7 billion of liabilities and only £29 million in ca...

Q: Segregation of duties is a basic requirement of a good control system

Segregation of duties is a basic requirement of a good control system. Explain what is meant by this statement and show how segregation of duties in a modern computer system might differ from that in...

Q: Take another look at both The County Hotel and Fine Faces and

Take another look at both The County Hotel and Fine Faces and discuss the proposition that auditors are so willing to help management that they might forget that their primary duty is to form an opini...

Q: What are the main practical differences between the audit risk approach and

What are the main practical differences between the audit risk approach and the business risk approach to auditing?

Q: ‘It is very easy to apply the audit risk model.

‘It is very easy to apply the audit risk model. All you have to do is to multiply figures together to determine the amount of testing you have to do’. Discuss this statement.

Q: Explain to your assistant what is meant by audit judgement and give

Explain to your assistant what is meant by audit judgement and give examples of its application. How certain can you be that your judgement has produced the right answer?

Q: Discuss the major factors that might influence managers in engaging in earnings

Discuss the major factors that might influence managers in engaging in earnings management. Consider audit procedures that might be appropriate where earnings management is suspected.

Q: Describe the regulatory structure for monitoring audit quality in the UK.

Describe the regulatory structure for monitoring audit quality in the UK.

Q: Why do you think that the auditors will need a letter from

Why do you think that the auditors will need a letter from management saying that they have provided them with all the books and records of the company? Try to think of a scenario where management mig...

Q: In Table 3.3 we suggested pressures against independence in respect

In Table 3.3 we suggested pressures against independence in respect of small audit firms and small auditees. To what extent do you believe that the IFAC Code and FRC Ethical Standard have been success...