,AUE2601 Exam
Revision & Study
Pack
Contains:
• Exam Revision Study Notes
• Exam Graded Questions with
Solutions (Must Have)
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, Page 1
1
st
Assignment 1 is compulsory and due 21 August 09 (study guide topics 1 – 4)
- counts towards final module mark
Aue2601
AUE2601 th
Assignment 2 is compulsory and due 25 September 09 (study guide topic 5)
- counts towards final module mark
Detailed Summarised
Detailed summarisedNotes & past
notes &
Assignment 3 is NOT compulsory and doesn't count towards final mark – self assessment
papers (from Past
pg 104)
papers Exam = 2 hours, consisting of :
70% - questions at Level 1 (knowledge and comprehension)
30% - questions at Level 2 (application)
INTRODUCTION TO AUDITING THEORY & AUDIT PRACTICE
PART A – INTRODUCTION TO AUDITING THEORY
Study Topic 2 (text book pg 1/2)
2.1 The need for Auditing Services
Jackson & Stent Chapter 1
ISA 200 – Objectives and general principles governing an audit
ISA 610
International Framework for Assurance Engagements
External auditors – express an independent opinion if the AFS’s of a company fairly present the financial position and
results of the company’s operations. NOT an employee of the company. Basically enhances the degree of confidence
which users of the financial statements will have of the information they received from the financial statements.
Internal auditors – perform independent assignments on behalf of senior management of the company – normally to
evaluate the efficiency, economy and effectiveness of the company’s internal control systems and business activities.
Enhances management’s degree of confidence that the company’s systems are functioning as intended. Employee of
the company, but should be independent of the department, division or subsidiary which they are auditing.
Government auditors – evaluate and investigate the financial affairs of government departments and report their
findings to senior government therefore increasing the degree of confidence which they have in their departments.
Employee of the government, but must be independent of the government department they are auditing.
Forensic auditors – concentrate on investigating and gathering evidence where there has been alleged financial
mismanagement, theft or fraud. Work independent of the entity under investigation and increases the degree of
confidence the investigating body has in the evidence which is presented.