Que..Factors affecting form, contents and extent of audit. .Ans..the nature and extent of exceptions identified. .plz sir explain this question and ans.

2 answers

Ravi Staff May 8, 2017

Below is content from notes.
Form, Content and Extent of Audit Documentation
The form, content and extent of audit documentation depend on factors such as:

  • The size and complexity of the entity.(↑Size ↑Extent, ↑Complexity ↑ Extent)
  • The identified risks of material misstatement. (↑Risk ↑Extent)
  • The nature of the audit procedures to be performed.(Test of controlsàFlow Charts Content / Analytical Proceduresà Graphs & Ratios)
  • The audit methodology and tools(Manual Inspection of RecordsàPhysical Form / CAATàElectronic Form)
  • The significance of the audit evidence(High Court Order of AmalgamationàPhoto Copy Document Form / Regular Purchase OrderàInspection + recorded PO number)
  • The nature and extent of exceptions(fraud + materialàExtent ↑ / error + materialàExtent ↓)
  • The need to document a conclusion or the basis for a conclusion not readily determinable from the documentation of the work performed or audit evidence obtained.(Complex workingàDetailed Calculation will be covered in content / Simpleà Only references will be given in content)
#1
Ravi Staff May 8, 2017

ask for any clarification on this same questions, here itself

#2

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