- 20 Marks
AA – Mar 2025 – L2 – Q2 – Audit Evidence
Explain 4 procedures to gather evidence on environmental regulation breaches at Tanko Company LTD.
Question
(a). During the audit of Tanko Company LTD, a manufacturer of plywood, it came to the External Auditor’s attention that the company was under investigation by the Environmental Protection Agency for breaches of environmental regulations. The company also recently came under adverse media reportage for doing little to restore the forest that is depleted as a result of their operations.
Required:
(i). Explain FOUR procedures that may be performed by the auditor to gather evidence about the possible impact of these developments.
(ii). What does the auditor do if there are no actual or suspected non-compliance matters? Justify your response.
(b).
Internal and external auditors often carry out their work using similar procedures. However, there are a number of fundamental differences between the two audit roles.
Required:
Distinguish between internal audit and external audit.
Find Related Questions by Tags, levels, etc.
- Tags: Audit Differences, Auditor Roles, External audit, Internal Audit
- Level: Level 2
- Topic: Internal Audit and External Audit Relationship
- Series: MAR 2025
