BRST 175 Lecture 99: Auditing and Assurance sugested solutions

• School: Yale University
• Department: British Studies
• Course: BRST 175
• Professor: Derek Briggs

Document Summary

Question one: the need for an audit. These are the requirements of the companies act cap 486. To prove the true and fair view of the companies state of affairs as at a given date. To find out whether the company has kept proper books of account. To write a report to be used by stakeholders. To provide advice to management on areas of internal weaknesses. Detection of errors and frauds: procedures for the appointment of an auditor. This occurs if there is no resolution to remove the existing auditor, if the existing auditor has not given in writing a notice to resign and if he has not committed an act to disqualify automatic re-appointment. Safeguarding the company assets an preventing fraud and error. Selecting suitable accounting policies and applying them consistently. Whether the profit and loss account and balance sheet are in agreement with the books of account and returns.