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Assignment - 2 Audit
Assignment - 2 Audit
1. You are appointed as an Auditor of AL Safa Company and Finance manager asked you
to prepare Audit Program. Explain steps you are going to follows for conducting
Audit works ( 3 Marks )
Answer:-
- After notifying the organization of the upcoming audit, I requesting financial
documents that include a copy of the previous audit report, original bank statement,
receipts and ledgers and organizational chart.
- After looking over the information contained in the documents, I start to prepare an
audit plan to identify possible problems.
- Then, I scheduling an open meeting and invite senior management and key
administrative staff and presented the scope of the audit.
- Conducting onsite fieldwork; after taking information gathered from the open
meeting. Also, internal controls are evaluated to make sure they’re adequate.
- After that, prepares a report detailing the findings of the audit. Included in the
report are mathematical errors, posting problems, payments authorized but not
paid and other discrepancies. Then writes up commentary describing the findings of
the audit and recommended solution to any problems.
- Setting up a closing meeting to solicits a response from management that indicates
whether it agrees or disagrees with problems in the report, a description of
management action plan to address the problem and a projected completion date.
- Finally, after discussing if there are any remaining issues, they’re resoled at this
point.
2. Write any two differences between Test Checking & Routine Checking. Write two your
own example for Test Checking & Routine Checking (4 marks)
Answer:-
1- Routine checking:
Verification of each and every items of book of account.
Done on a daily basis.
Example:-
2- Test checking:
To select and examine a representative sample from large number of similar
items.
It can be done on a weekly, monthly or quarterly basis depending upon the size
of an organization.
Example:-
Rules:
Answer should be the own work of the students by referring relevant text book from library /
ProQuest / other internet sources
If two or more answers found same, all will be given ZERO marks
Praveeth.k@Sct.edu.om
3. How to overcome drawbacks of Audit Program?