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Auditing Tests Spring 2014-5
Auditing Tests Spring 2014-5
Question 1:
Write down the followings:
Suggested format of letter of debtor confirmation by direct confirmation and how will you
differentiate into negative and positive confirmation (6 + 2)
Bank reports for audit purposes ( any ten with brief description) ( 10)
Question2:
Write down the steps taken by auditor in external confirmation also factors for its design ` (6)
Question 3:
a.
Indicate what would be the basis for selecting debtors for circularizing positive and negative requests for
confirmations and how can the risk can be minimized that arises by using these. (6)
b.
List and give brief description of the procedures that should be adopted due to management’s refusal to send
a request for confirmation of balance. What would be the responses of auditor when refusal is reasonable and
unreasonable? (8)
c.
Describe the alternative audit procedures which may be conducted if the customer does not reply to a request
for confirmation. (4)