Mon.

23/01/2012 Time Allowed: Three Hours

Batch (6)
Specialization Accounting
Final Semester (7) Examination

Auditing (1)

Attempt All Questions:-

Question One:-
A client of your firm is concerned that there is no enough control over stock
within his organization. He states that they form a high proportion of the assets
within the company’s balance sheet and requires you to prepare a formal letter
to the production director outlining the controls that are necessary in this area.

Question Two:-
The internal audit functions can be classified into four main capacities,
determine these capacities and show how the statutory auditor assesses the
quality and effectiveness of the internal audit in practice.

Question Three:-
a. Explain the meaning of the term “permanent file “as used in connection
with audit working papers. What kinds of information are usually
included in the permanent file?
b. What is meant by the term “internal check?”

Question Four:
What are the major functions of audit working papers?