Seminar Assessment purposes or functions of audit documentation, business and finance homework help

Seminar Assessment

LP2 Seminar – Part 1: https://youtu.be/WMonYZN6ydI

LP2 Seminar – Part 2: https://youtu.be/buAnAyX3Hc0

3-57. Audit Documentation

The preparation of audit documentation is an integral
part of an auditor’s examination of financial statements. On a recurring
engagement, auditors review the audit the audit plans and audit documentation
from the prior audit while planning the current audit to determine their
usefulness for the current-year work.

Required:

1. (1)
   What are the purposes or functions of audit documentation?

   (2) What records may be included in
   an audit documentation

2. What
   factors affect the auditors’ judgement of the type and content of the audit
   documentation for a particular engagement?

3. What
   should be included in audit documentation to support auditors’ compliance with
   generally accepted auditing standards

4. How
   can auditors make the most effective use of the prior-year audit plans in a
   recurring audit

4-62 Auditing Standards Review

Management fraud (fraudulent financial reporting) is
not the excepted norm, but it happens from time to time. In the United States,
several cases have been widely publicized. They happen when motives and
opportunities overwhelm managerial integrity

1. What
   distinguishes management fraud from a defalcation?

2. What
   are an auditor’s responsibilities under auditing standards to detect management
   fraud?

3. What
   are some characteristics of management fraud that an audit team should consider
   fulfill the responsibilities under auditing standards?

4. What
   factors might an audit team notice that should heighten the concern about existence
   of management fraud?

5. Under
   what circumstances might an audit team have a duty to disclose management’s
   frauds to parties other than the company’s management and its board of
   directors?