Auditing Principles and Procedures / 401

INSTRUCTIONS:

TheAssignmentmustbesubmittedonBlackboard(WORDformat 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 answered must be typed using Times New Roman (size 12, double-spaced)font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Q1. Inventory management in corporations identifies management’s practices, investigate efficient and effective inventory management approaches, and efficient and effective inventory management practices, which are key points for an auditor to ensure evidences for an opinion in the audit report on inventory.

Imagine that you are an auditor of a corporation in KSA and answer the following:

a.Bring out the inventory management process you would follow to check efficient and effective inventory management practices in the corporation.

b.List done the important functions with examples in the inventory management process.

c.Explain the audit tests you would cover with related assertions to get assured evidences

d.Conclude your testing on likely and tolerable misstatementsallocated to the inventory account (Chapter 13)

Answer(5Marks)

Q2. What are the control purposes and management assertions supported by bank reconciliations? (Chapter 16)

Answer (3 Mark)

Q3. The standard unqualified report is issued when the auditor has gathered sufficient evidence, the audit has been performed in accordance with PCAOB standards, and the financial statements conform to GAAP.

Required:

Take an example of a corporation from KSA and explain the important elements necessary for a standard unqualified report issued by an auditor in reporting of financial statements. Give examples on each element. (Chapter 18)

Answer (4 Mark)

Q4. Briefly explain Assurance Services, Attest services and Trust Services. (Chapter 21)

Answer (3 Mark)