Define ‘going concern’ and discuss the auditor’s responsibilities in respect of going concern. (4 marks)
In the context of the cash flow forecast, define the term ‘negative assurance’ and explain how this differs from the assurance provided by an audit report on statutory financial statements. (4 marks)
List FOUR control objectives of a wages system. (2 marks)
(a) ISA 620 Using the Work of an Expert explains how an auditor may use an expert to obtain audit evidence. Required:
Explain THREE factors that the external auditor should consider when assessing the competence and objectivity of the expert. (3 marks)
(b) Auditors have various duties to perform in their role as auditors, for example, to assess the truth and fairness of the financial statements.
Explain THREE rights that enable auditors to carry out their duties. (3 marks)
(c) List FOUR assertions relevant to the audit of tangible non-current assets and state one audit procedure which provides appropriate evidence for each assertion. (4 marks)