During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items?
Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP? (Companies Ordinance, 1984)?
- Statements, accuracy, and feasibility
- Date, accuracy, and reliability
- Policies, value, and reliability
- Cycle, policies, and reliability
Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP? (Companies Ordinance, 1984)?
- Directors
- Shareholders
- Company registrar
- SECP
- Engagement letters
- Audit procedures
- Audit evidence
- Reasonable assurance
- Books of accounts should be preserved for 10 years
- Books of accounts are to be kept at the registered office of the company
- Directors can review the books of account during the business hours
- If a company fails to maintain books of accounts according, it may leads to demolish the entity
- Use of testing (Sampling)
- Interest limitations of accounting and internal control
- Remuneration of the auditor
- Persuasive nature of audit evidence
- Be a sufficient source of data for the evaluation of internal controls
- Identity the internal control system's strengths and weaknesses
- Be organized by individual functional organizations
- Should include simple yes or no responses but no narrative responses
- ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
- The rules of constructing ICEC is different than construction of Internal Control Questionnaire
- It is designed to determine, whether desirable internal controls are present
- It is normally employed where system's information has already been recorded
- Program for tests of control
- Understanding of the system
- Understanding of the types of irregularity that are probable given by the present system
- Documentation of the study and evaluation of the system
- Integrity and ethical values
- Risk assessment
- Commitment to competence
- Organization structure
- Financial statement audits
- Operational audits
- Technical Audits
- Compliance audits
- That the management can not override the system
- Operational efficiency has been achieved according to management plans
- Errors have been prevented or detected
- Controls have not been circumvented by collusion
- Approved payrolls
- Vouchers
- Accounting statements
- Cash memos
- Areas that may represent specific risks relevant to the audit
- Material weaknesses in the internal control structure
- The predictability of financial data form individual transactions
- The various assertions that are embodied in the financial report
- General meeting
- Extra ordinary general meeting
- Board meeting
- Management meeting
