Settlement of Audit Objections

audit programme

flow charts

working papers

any of the above

Statutory audit

Partial audit

Complete audit

Continuous audit

They document the level of independence maintained by the auditor

They should be considered as the principle support for the auditor’s report

They should not contain details regarding weaknesses in the internal control system

They help the auditor to monitor the effectiveness of the audit firm’s quality control

It results in the deliberate misappropriation of cash receipts

It is associated with cash receipts

If same individual maintains cash receipts and cash payments teeming and lading is likely to exist

To conceal the shortage, the defraud, usually, tries to keep bank and book amounts in daily agreement so that a bank reconciliation will not detect the irregularity.

Sample size

Audit risk

Materiality

Expected error

assets

liabilities

income and expenditure accounts where appropriate

all of the above

It helps to study relationship among balance sheet accounts

It helps to discover material misstatements in the financial statements

It helps to identify possible oversights

It helps to accumulate evidence supporting the validity of a specific account balance

Statutory audit

Concurrent audit

Balance sheet audit

All of the above

Record the cash sales when purchase order is received from the customer

Record the cash sales at the point they are made

Record the cash sales after some period

Record the cash sales weekly

ICEC is developed to overcome the shortcomings of Internal Control Questionnaire

The rules of constructing ICEC is different than construction of Internal Control Questionnaire

It is designed to determine, whether desirable internal controls are present

It is normally employed where system’s information has already been recorded