3)

The term error refers to an unintentional misstatement occurred in financial statements,

including the omission of an amount or disclosure, such as:

 An error occurred in the collection or processing of data on which the financial

statements are based on.

 An incorrect accounting estimate occurred due to overlooking or misinterpretation of

facts;

The term fraud refers to an intentional act by one or more individuals among management,
those charged with governance, employees or third parties, involving the use of deception to
obtain an unjust or illegal advantage. Fraud may involve:

 Manipulation, falsification or alteration of records or documents;

 Inadequate allocation of assets;

responsiblility-------------------------------------------------------------------???

9) Internal controls are the mechanisms, rules, and procedures implemented by a company to
ensure the integrity of financial and accounting information, promote accountability, and prevent
fraud. Besides complying with laws and regulations and preventing employees from stealing
assets or committing fraud, internal controls can help improve operational efficiency by
improving the accuracy and timeliness of financial reporting.

An auditor tests the controls you have set up for the sales cycle to determine how strong and
reliable they are. If they are strong, the auditor can reduce the amount of transaction testing he
must do. Common internal controls over the sales cycle include numbered sales invoices,
purchase order authorization over a certain limit and authorization over receivables write-offs.
Testing of Individual Transactions

10 the control objective of fixed assets is

 1) Obtain and review all the relevant policies and procedures for the Fixed Asset Management
process.

2)Make an assessment of the adequacy of these policies and procedures in addressing the major
aspects of control in this area.

Audit assertions for PPE

Existence PPE reported on the balance sheet really exists at the reporting date.
PPE balances truly reflect their actual economic value as at reporting
Valuation
date.
Completeness All PPE transactions that should have been recorded have been recorded.
Rights and obligations The client has ownership rights for PPE as of the reporting date.

11) The overall objective of the audit over sales is to

determine if they are fairly presented in the context of the financial statements as a
whole. The sales account is closely tied to accounts receivable; therefore, evidence
supporting accounts receivable tends to support sales. For example, having
determined that an account receivable is valid, the auditor has thereby supported the validity of
the sale.

the overall objective of the auditor over inventory is to prove the existence, rights, accuracy and
realizable value of items in a company's inventory. An auditor uses multiple analytical procedures to
verify a company's inventory methods and confirm that the financial records match the physical counts.

the overall objective of the auditor over fixed assets is extremely important to ensure that accounting
for capital assets and depreciation is in compliance with management’s.

the overall objective of the auditor over purchase and accounts payables Determine the existence
of recorded accounts payable and other liabilities. Establish the completeness of recorded
accounts payables and other liabilities.

15) An audit program is a set of directions that the auditor and its team members need to follow
for the proper execution of the audit.

An audit program, also called an audit plan, is that documents what procedures an auditor will
follow to validate that an organization is in conformance with compliance regulation.