Auditing Principles and Procedures

Assignment (1)

Deadline: Saturday 05/03/2021 @ 23:59

For Instructor’s Use only

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.
• Submissions without this cover page will NOT be accepted.

Assignment Question(s): (Marks 10)

IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides, fellow students, or internet sources without proper citation.

Q1. Explain the relationship between audit, attest, and assurance services. (3 Marks).

Q2. Assume that you are the new audit senior on the Sameer Drug Corporation (SD) engagement. SD is a pharmaceutical company that has three successful drugs and several drugs in progress in its research and development pipeline. You are considering your audit plan and it is important to identify the inherent risks that SD has and how they relate to the planning process. (2 Marks).

Required:

For each of the following factors, indicate whether it will tend to increase, decrease, or have no effect on inherent risk, and the reasoning for your answer.

a. Dr. Ahmad is the major shareholder of SD and its CEO.
b. Your firm has audited SD for the last four years.
c. There has been a high turnover of key accounting personnel during the last two years.
d. The internal audit function reports to the audit committee.

Q3. Discuss the purposes for planning the audit and identify the steps that are performed during this phase of the engagement. (3 Marks).

Q4. Name and describe three supervisory activities that should be performed by the engagement partner and other engagement team members performing supervisory activities. (2 Marks).