Auditing Principle & Procedur / ACCT 401

College of Administration and Finance SciencesAssignment (1)
Deadline: Saturday 02/03/2024 @ 23:59
Course Name: Auditing Principle &
Procedur
Student’s Name:
Course Code: ACCT 401
Student’s ID Number:
Semester: 2nd
CRN:
Academic Year: 1445 H (2023-2024)
For Instructor’s Use only
Instructor’s Name: Dr. Mohammed Arshad Khan
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
● The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
● Assignments submitted through email will not be accepted.
● Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
● Students must mention question number clearly in their answer.
● Late submission will NOT be accepted.
● Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
● All answers must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism.
College of Administration and Finance Sciences
● Submissions without this cover page will NOT be accepted.
Assignment Question(s):
College of Administration and Finance Sciences
1. On the audit of Technology Unlimited, a leading manufacturer of computer chips,
the external audit staff discovers that the internal audit staff has performed
extensive evaluation and testing on the control environment. What should the
external auditors do to determine the extent to which they may use the work of the
internal audit staff? Can the external audit staff rely on the internal audit staff for
evaluating and testing the control environment?
(4 Marks)
Answer
College of Administration and Finance Sciences
2 In terms of an audit, define substantive strategy and reliance strategy. Include in
your definition how the different strategies relate to internal control. Which strategy
would best relate to a lower control risk?
(3 Marks)
Answer
3. Your manager, Ahad, believes that nonstatistical sampling is the best method to
use on the audit of YaYa Corporation. You, however, believe that statistical sampling
is by far the better method. In addition, you have a great deal of training in the
proper use of sampling techniques. Prepare an argument to convince Sally why
statistical sampling should be used.
(3 Marks)
College of Administration and Finance Sciences
4 What do you mean by Audit process? Discuss the seven phases of the audit
process.
(5Marks)