AUE 2601 ASSIGNMENT 2

AUE 2601 Assignment 2 1. 1.1)Three procedures that Spencer Steward should have performed include the following,  Assess risk attached to each opening balance of account, for example non current assets balance.  Agree prior year closing balances through to current year opening balances  Review predecessors audit work papers or review the work of previous 1.2) Elements of a quality control for firms that perform audits are:  Audit firms must establish policies and procedures for engagement teams to put together finalized engagement files on a timely basis such as setting deadlines, review and sign off files.  Audit firms must establish policies and procedures designed to maintain confidentiality of audit documentation for example , use of passwords to access computerized work papers  Safe custody physical controls over hardcopy and electronic work papers such as physically security over the area.  Integrity accessibility such as sign a register  Control over irretrievability of engagement documentation such as back up routines  Controls over the distribution of work papers such as sign a register 1.3) The following are the requirements of the form and content of audit documentation required by ISA 230,  The auditor should prepare on a timely basis, audit documentation. The audit documentation must provide a sufficient and appropriate record of the basis for the auditor’s report, and evidence that the audit was performed in accordance with International Accounting Standards.  Documenting the nature, timing and extent of audit procedures, the auditor should record the identifying characteristics of the item/matters tested.  Documenting significant matters identified on the audit.  All experienced auditors who do not have previous connection with the audit should be able to understand the nature, timing and extent of audit procedures performed to comply with ISAs  The auditor should prepare on a timely basis, audit documentation that provides a sufficient and appropriate record of the basis for audit report.  Preparers and reviewers names and the respective dates for conducting the audit work has to be recorded on the work paper. 2.1 and 2.2 1) Test of Control Most reliable 2) Test of Control Most reliable 3) Test of Control Most reliable 4) Test of Control Most reliable This study source was downloaded by from CourseH on :50:11 GMT -05:00 Th