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Procedures in computing the work of the expert
The auditor must obtain reasonable assurance that the expert's work constitutes appropriate audit evidence in support of the financial information. He should thus consider the source data used and whether it is suitable in the circumstances, the assumptions and technique used and their consistency with prior periods and the results of the expert's work in the light of the auditor's overall knowledge of the business and the results of his other audit procedures. He should satisfy himself that the substance of the expert's finding is properly reflected in the financial information. How appropriate, reasonable the assumptions and methods used are and how they have been applied is the expert's responsibility. The auditor does not have the same expertise so he cannot always challenge the expert's assumptions and methods. Although the auditor is not an expert on the expert's field of speciality, the auditor must be able to determine what is reasonable and what is not. Hence he should acquire an understanding of the assumptions and the techniques to determine that they are reasonable. There are times when the work of the expert does not support the associated representations in the financial statements then the auditor must attempt to solve the inconsistency by holding discussions with the client and the expert. He might need to engage another expert in solving the inconsistency.
Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The
As a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Local Corporation (TLC). In addition, the p
Negligence in General There is no case against auditors and this made it hard to be accurate as to where the auditor’s legal liability falls. We require therefore referring to
With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.
problems associated with intangible asset audit
Case Study: You have commenced work as a graduate auditor with a well established audit firm. The firm has a wide client base, which includes some of the largest companies in t
Related Services to Auditing Additionally, audit services, auditors offer other services. These can be categorized as: Assurance engagements: • Audits • Reviews Non-a
Documentation of Representations by Management The auditor would ordinarily involve in audit working papers evidence of management's representations in form of a summary of or
Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern
techniques of vouching
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