2007 summer - SUMMER SESSION 2006/7 Examination for the BA...

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SUMMER SESSION 2006/7 Examination for the BA (HONOURS) ACCOUNTING AND FINANCE PATHWAYS BUSINESS SCHOOL OPTION FINAL YEAR 5B3030 AUDIT AND ASSURANCE JOINT UNIT LEADER/AUTHORS: NEIL RODDA AND GRAHAM HOLT 30 th April 2007 5.00 pm 8.00 pm Instructions Time allowed: 3 hours Answer TWO questions from Section A and TWO questions from Section B . All questions carry equal marks.
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1 SECTION A - Answer TWO questions ONLY from this section 1 Auditors base their conclusions about systems and financial information on evidence. The relationship of evidence to audit conclusions is fundamental to the audit process. The origin of most legal actions against auditors results from a lack of sufficient, reliable and relevant evidence. The need for audit evidence to be persuasive (that is to be sufficient, reliable and relevant) is considered in several formal documents. However it can be argued that little practical advice is offered with regard to how auditors can determine whether or not evidence meets those quality standards. Required (a) Discuss the importance of evidence in the audit process (7 marks) (b) Identify and explain the key elements which determine the quality of audit evidence. (18 marks) Total 25 marks 2 Auditor independence is a cornerstone of the auditing profession and of paramount importance. Some commentators consider that compulsory firm rotation, compulsory personnel rotation and greater use of audit committees in the audit process would strengthen auditor independence. Required Discuss the above statement and reach a conclusion. Total 25 marks
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2 3 Audit risk is a term that is commonly applied in relation to the audit of the financial statements of an entity. The primary objective of such an audit is to provide an opinion as to whether or not the financial statements present fairly
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This note was uploaded on 10/24/2010 for the course ACCOUNTING INFS2005 taught by Professor Steven during the Three '10 term at Australian National University.

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2007 summer - SUMMER SESSION 2006/7 Examination for the BA...

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