• Educating the public . • Enhanced reporting explaining audit processes and levels of opinion auditors provide to the entity. • Greater attention to the risk of material fraud occurring.
WHO ARE THE REGULATORS OF THE AUDIT AS A PROFESSION?
THE ROLE OF REGULATORS AND REGULATIONS THERE ARE A NUMBER OF REGULATORS THAT IMPACT THE AUDIT PROCESS. THEY INCLUDE: 1. IAASB – International Auditing & Assurance Standard Board 2. XRB – External Reporting Board (NZ) 3. NZAuASB – New Zealand Auditing & Assurance Standard Board 4. CAANZ – Chartered Accountants Australia and New Zealand 5. FMA – Financial Market Authority
PRACTICE QUESTIONS: 1.32 MAX SECURITY LTD. Max Security Users of Max Security FS Expectation Gap?
Users of Max Security FS Expectation Gap: Special Interest?
PQ 1.37 CHAN & PARTNERS CHARTERED ACCOUNTANTS Chan & Partners gained a new client, Medical Services Holdings Group (MSHG) which owns 100% of • Shady Oaks Hospital; Gardens Nursing Home & Total Cancer Specialist Ltd (TCSL). • The Department of Health funded half of the purchase price of a new, more technologically advanced linear accelerator used in radiation therapy. (a) Discuss relevant criteria against which Auditor- General (AG) will check TCSL’s compliance with the terms of funding agreement. (b) Identify two criteria the AG can use to examine how well hospitals manage waste.
• a) Explain why an auditor cannot offer absolute assurance. (8 marks) • b) Differentiate between the concepts of due care and professional skepticism. (8 marks) • [Total: 16 Marks] 2017 FINAL EXAM QUESTION
Tom & Associates offer their New Zealand clients a range of professional services, including: • Verifying the accuracy of selected balance sheet and income statements accounts • Establishing the fair presentation of financial statements of small medium enterprises • Investigation of compliance with loan covenants a) For each of the services (i - iii) above, state what type of services is provided and the level of assurance it provides. (6 marks ) b) How is the audit expectation gap caused and how can the effects of the audit expectation gap be reduced? Explain. (6 marks) [Total: 12 Marks] 2016 FINAL EXAM QUESTION
FIND AORERE RESOURCES LIMITED • Assuming you are an audit partner for RBO & Associates, a medium-sized audit firm in Albany. • Who is the assurance practitioner/auditor for the last financial year’s financial audit? • Who rely on this audit report? Why? • What type of audit opinion was issued by the auditor? • Looking at the nature of Aorere’s business and the auditor’s report, what are the information that you think might require due care, professional judgement and professional scepticism if you are going to be the new auditor? • What one aspect that you think the user might be unrealistic expect from the auditor of Aorere? • What type of assurance services can you provide to Aorere? • What other non-assurance services can you offer?
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- Winter '16