- 6 Marks
Question
Management of Bagabu Ltd has a filing system that is largely manual. Their external auditors have expressed concern about how to obtain appropriate and sufficient evidence to support their opinion.
Required:
State FIVE (5) ways management of Bagabu Ltd can support the auditors to obtain appropriate and sufficient audit evidence to support their opinion.
Answer
To fulfill this responsibility, management should:
- Provide complete and accurate financial statement data, including supporting documents and records.
- Provide access to all relevant information, including personnel, documents, and records related to the financial statements.
- Provide timely responses to auditor inquiries and address discrepancies promptly.
- Implement effective internal controls to ensure accuracy and completeness of the financial statements.
- Ensure overall cooperation with the auditor by providing unrestricted access and support during the audit process.
- Tags: Audit evidence, Audit opinion, External audit, Financial Statements, Internal Controls
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Series: MAR 2024
- Uploader: Theophilus