Chpter one

Case 1.
Assume you are independent auditor of xyz, company ,During the
past three audits, you have repeatedly warned the top management
of the company about the serious weakness of internal control over
cash disbursements

የ xyz ፣ የኩባንያው ገለልተኛ ኦዲተር ነዎት እንበል ፣ ባለፉት ሶስት ኦዲቶች

፣ በጥሬ ገንዘብ ክፍያዎች ላይ የውስጥ ቁጥጥር ከባድ ድክመትን በተመለከተ
የኩባንያውን ከፍተኛ አስተዳደር ደጋግመው አስጠንቅቀዋል፡፡እና ኦደተሩ በቀጣይ
ሊያደርግ የሚችለው ምንድን ነው ኩባንያውስ ምን ማድረግ አለበት

Case 2

1
Assume Mrs, Lysa, ageneral manager of Lyas research and
consultancy,Applied for above loan to dashen bank was informed by
the loan officer in the bank that audited financial stetment of the
business must be submitted before the bank could consider the loan
application . mrs lysa agreed with dally
CPA, to perform an audit mrs lysa informed daily that audited
financial stetment were required by the bank and that the audit must
be completed within two weeks and mrs lysa promised to any daily.

የሊያስ የምርምር እና የምክር አገልግሎት አጠቃላይ ሥራ አስኪያጅ ወይዘሮ

ሊሳ፣ ለዳሸን ባንክ ከዚህ በላይ ብድር የተመለከተው ባንኩ የብድር

ማመልከቻውን ከማጤኑ በፊት የቢዝነስ የፋይናንስ ምዘና መቅረብ እንዳለበት

በባንኩ ውስጥ ባለው የብድር ሹም ተገል informed ። ወይዘሮ ሊሳ መደብር

ሲፒኤ ተስማምተዋል ፣ ኦዲት ለማድረግ ወይዘሮ ሊሳ በየቀኑ ኦዲት የተደረገ

የፋይናንስ ሁኔታ በባንኩ እንደሚያስፈልግ እና ኦዲቱ በሁለት ሳምንታት ውስጥ

መጠናቀቅ እንዳለበት እና ወይዘሮ ሊሳ ለማንኛውም ዕለታዊ ቃል

ገብተዋል።በዚሁ መሠረት በገቡት ቃል መሰረት ምን መደረግ አለበት፡፡

Case 3.

2
 The objective of an ordinary audit to express an opinion as to be
fairness of information in all material respects on statement of
financial position ,results of operations and cash flow, in conformity
with GAAP.
List and discuss transaction related audit objective
1. The standard unqualified audit report has seven sequential parts
and each parts has its own unique objectives
Identify three major paragraphs and explain their purpose
 ANSEWR
1.Report Title
 The appropriate title would be “Independent auditor’s report,
or Report of independent auditors.” The requirement that the title
include the word “independent” is intended to convey to users that
the audit was unbiased in all aspects of the engagement. 

2.Address
 The report is usually addressed to the company, its stockholders or
the board of directors or combinations of these.
3.Introductory paragraph
A.It makes the simple statement that the audit firm has done an
audit. This is intended to distinguish the report from a compilation
or review report.

3
 B. It lists the financial statements that were audited, including the
balance sheet, income statement, statement of retained earnings and
cash flow statements.
C. The introductory paragraph states that the statements are the
responsibility of management and that the auditor’s responsibility is
to express an opinion on the financial statements based on an audit.
4.Scope paragraph
 The scope paragraph describes what the auditor has performed
during the audit. Specifically, it states
 Whether the audit was conducted in accordance with (GAAS).
 It also states the GAAS requirement that an audit was planned to
provide reasonable assurance that the financial statements are free
of material misstatement.
 The inclusion of the word “material” conveys that auditors are
responsible only to search for significant misstatements; not minor
errors that do not affect users’ decisions.
 The use of the term “reasonable assurance” is intended to indicate
that an audit provides a high level of assurance, but it is not a
guarantee.
 The scope paragraph also discusses the audit evidence accumulated
and states that the auditor believes the evidence accumulated was
appropriate for the circumstances to express the opinion presented.
 The word test-basis indicates that sampling was used rather than an
audit of every transaction and amount on the statements.

4
5.Opinion Paragraph
 This paragraph contains the auditor’s opinion on whether the
financial statements are in conformity with GAAP.
 It describes the auditor’s findings. These findings are expressed
in terms of whether the financial statements are presented in
accordance with generally accepted accounting principles.
 The audit report must contain either an expression of opinion
or an assertion to the effect that an opinion can not be rendered
and the reasons for this.
6. Name of the audit firm and signature:
 The name and the signature identify the audit firm or
practitioner that has performed the audit. Typically, the firm’s
name is used, since the entire audit firm has the legal and
professional responsibility to make certain the quality of the
audit meets professional standards.

7.Date of audit report

 The appropriate date of the audit report is the one on which the
field work has been completed.
 This date is important because it represents the time limit on
the auditors’ responsibility.
 The auditor does not have any responsibility to make any
enquiries after this date.

5
Case 4
Assume you are certified charted account in Ethiopia you are
assigned to conduct comprehensive financial statement audit of gage
University College for the year 2013 E.c
What is the possible evidence that you are going to use? Give real
example for each
በኢትዮጵያ የተረጋገጠ ቻርት አካውንት እንዳለዎት እንገምታለን ፣ ለ 2013

ዓ.ም.

እርስዎ ሊጠቀሙባቸው የሚችሉት ማስረጃ ምንድነው? ለእያንዳንዱ እውነተኛ

ምሳሌ ይስጡ

6
 Case.5.
 Assume you are an independent auditor of XYZ company.
During the past three audits, you have repeatedly warned the
top management of the company about the serious weakness of
internal control over cash disbursements. However,
management has not taken any corrective action. Shortly after
the audit, XYZ company learned that two employees in its
accounting department had been embezzling money for the last
two years. The embezzlement scheme involved authorizing
cash disbursement in various expense accounts and then
arranging to have the checks cashed. The management of XYZ
company has brought suit against you for the amount of its
losses in this cash fraud.
Required:
A-Suggest at least three arguments that you as an auditor can
defend your self to lessen or eliminate the liability.
B-What arguments might XYZ company advance to indicate that
you were negligent in failing to discover the embezzlement scheme?
C-Briefly describe the auditors’ responsibility for the detection of
errors and irregularities.

7
እርስዎ የ XYZ ኩባንያ ገለልተኛ ኦዲተር ነዎት ብለው ያስቡ። ባለፉት ሦስት

ኦዲቶች ፣ በጥሬ ገንዘብ አከፋፈል ላይ የውስጥ ቁጥጥርን ከባድ ድክመት

በተመለከተ የኩባንያውን ከፍተኛ አመራር ደጋግመው አስጠንቅቀዋል። ሆኖም

አመራሩ ምንም ዓይነት የእርምት እርምጃ አልወሰደም። ከኦዲት በኋላ ብዙም

ሳይቆይ የ XYZ ኩባንያ በድርጅቱ የሂሳብ ክፍል ውስጥ ሁለት ሠራተኞች

ላለፉት ሁለት ዓመታት ገንዘብ ሲመዘበሩ እንደነበረ ተረዳ። የማጭበርበር

ዘዴው በተለያዩ የወጪ ሂሳቦች ውስጥ የገንዘብ ክፍያን መፍቀድ እና ከዚያ

ቼኮች በጥሬ ገንዘብ እንዲቀመጡ ማድረግን ያካትታል። የ XYZ ኩባንያ

አስተዳደር በዚህ የገንዘብ ማጭበርበር ውስጥ ለደረሰበት ኪሳራ መጠን በእናንተ

ላይ ክስ አምጥቷል።

ተፈላጊ ጥያቄ
ሀ-ተጠያቂነትን ለመቀነስ ወይም ለማስወገድ እርስዎ እንደ ኦዲተር እራስዎን

ለመከላከል የሚችሏቸው ቢያንስ ሦስት ክርክሮችን ይጠቁሙ።

ለ-የሀብት ማጭበርበር ዘዴን ባለማወቅ ቸልተኛ መሆንዎን ለማመልከት የ

XYZ ኩባንያ ምን ክርክሮችን ሊያራምድ ይችላል?

ሐ-ስህተቶችን እና ጥሰቶችን ለመለየት የኦዲተሮችን ኃላፊነት በአጭሩ

ያብራሩ።

Chapter 2

8
 Assume Mrs.. LYSA, a general manager of LYSA research &
Consultancy, applied for a bank loan to Dashen bank and was
informed by the loan officer in the bank that audited financial
statements of the business must be submitted before the bank
could consider the loan application. Mrs . LYSA agreed with
DAILLY, CPA, to perform an audit. Mrs. LYSA informed
Daily that audited financial statements were required by the
bank and that the audit must be completed within two weeks
and Mrs. LYSA promised to pay Daily a fixed fee plus a
bonus if the audit is completed within two months and the
bank approved the loan. Daily, CPA agreed and accepted the
engagement. The CPA, Daily, hired two fresh accounting
graduates to conduct the audit and spent several hours telling
them exactly what to do and he told them not to spend time
reviewing internal control but instead, to concentrate on
proving the mathematical accuracy of the ledger accounts and
summarizing the data in the accounting records that support the
company’s financial statements. The Income statement & Cash
flow audit was completed within two weeks and Daily issued
unqualified audit report.
 Instruction: Identify any auditing principles that were violated
By Daily and support your answer with justification

 የሊሳ ምርምር እና አማካሪነት ዋና ሥራ አስኪያጅ ወ / ሮ ሊይሳ ለዳሸን ባንክ

የባንክ ብድር መጠየቅና የባንኩን የሂሳብ መግለጫዎች ባንኩ ባገናዘበበት ጊዜ የባንኩ

9
 የሂሳብ መግለጫዎች መቅረብ እንዳለባቸው በባንኩ የብድር ሹም አስታወቀ።

የብድር ማመልከቻ. ወይዘሮ . LYSA ኦዲት ለማድረግ በ DAILLY ፣ CPA

ተስማማ። ወይዘሮ ሊሳ ለዕለታዊ ማስታወቃቸው የኦዲት የሂሳብ መግለጫዎች

በባንኩ እንደሚጠየቁ እና ኦዲቱ በሁለት ሳምንት ጊዜ ውስጥ መጠናቀቅ እንዳለበት

እና ወይዘሮ ሊሳ ኦዲት በሁለት ወራት ጊዜ ውስጥ ከተጠናቀቀ እና ባንኩ ከፀደቀ

ለዕለታዊ ቋሚ ክፍያ እና ጉርሻ እንደሚከፍሉ ቃል ገብተዋል። ብድሩ። በየቀኑ ፣

ሲፒኤ ተስማማ እና ተሳትፎውን ተቀበለ። ሲፒኤ ፣ ዕለታዊ ፣ ኦዲቱን ለማካሄድ

ሁለት አዲስ የሂሳብ ተመራቂዎችን ቀጠረ እና በትክክል ምን ማድረግ እንዳለባቸው

ለብዙ ሰዓታት አሳለፈ እና የውስጥ ቁጥጥርን ለመገምገም ጊዜ እንዳያሳልፉ

ነገራቸው ፣ ይልቁንም የመመዝገቢያ ሂሳቦችን የሂሳብ ትክክለኛነት በማረጋገጥ ላይ

እንዲያተኩሩ እና የኩባንያውን የሂሳብ መግለጫዎች በሚደግፉ የሂሳብ መዛግብት

ውስጥ ያለውን መረጃ ማጠቃለል። የገቢ መግለጫ እና የገንዘብ ፍሰት ኦዲት

በሁለት ሳምንታት ውስጥ ተጠናቆ ዕለታዊ ብቁ ያልሆነ የኦዲት ሪፖርት አወጣ።

 በዕለት ተዕለት የሚጣሱትን ማንኛውንም የኦዲት መርሆዎችን ይለዩ እና መልስዎን

በማፅደቅ ይደግፉ

Chapter 7
 Assume you were an external auditor of ML BITC Mekele during the
last 3 years i. In your audit you observed the significant weakness of

10
internal control system in general and cash payment in particular. You
told the management this weakness and advised to take corrective action
soon frequently and issued unqualified audit report. Immediately after
your last audit report the management observed that some employees in
Finance department were preparing check amounting 200,000 in the
name of different expenses and cashing and using it for their own each
year. Following this the management has brought suite against you for
the amount cheated.
 Req
 What argument can the management raise ?
 How can you defend your position in this regard?

እርስዎ ባለፉት 3 ዓመታት ውስጥ የ MLBITC መቀሌ የውጭ ኦዲተር

እንደነበሩ ያስቡ i. በኦዲትዎ ውስጥ በአጠቃላይ የውስጥ ቁጥጥር ስርዓት ጉልህ

11
ድክመት እና በተለይም የገንዘብ ክፍያ ተመልክተዋል። ይህንን ድክመት

ለአስተዳደሩ ነግረው ቶሎ ቶሎ የማስተካከያ እርምጃ እንዲወስዱ መክረዋል

እና ብቁ ያልሆነ የኦዲት ሪፖርት አወጣ። ባለፈው የኦዲት ሪፖርትዎ ላይ

ወዲያውኑ አስተዳደሩ በገንዘብ መምሪያ ውስጥ ያሉ አንዳንድ ሠራተኞች

በተለያዩ ወጪዎች ስም 200,000 የሚሆነውን ቼክ እያዘጋጁ በየአመቱ

ለራሳቸው እየተጠቀሙበት መሆኑን አስተውሏል። ይህንን ተከትሎ በተጭበረበረ

መጠን አስተዳደሩ በእርስዎ ላይ ስብስብ አምጥቷል።

Q ተፈላጉ ጥያቄ

አመራሩ ምን ክርክር ሊያነሳ ይችላል?

በዚህ ረገድ ያለዎትን አቋም እንዴት መከላከል ይችላሉ?

12