Investigation – Knowsia

AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Question

Badagry Yachting and Marina (BYM) have a marina on the West Coast of Nigeria and a large sales operation dealing in yachts and speedboats. You are responsible for the audit of BYM and have found some potential causes of concern that could indicate fraudulent activity or financial misconduct within the company. In particular:

(i) 30% of the yachts on sale by BYM are supplied through one of the major international boating companies with a special finance arrangement deal. However, BYM have also obtained separate finance on these yachts, which are therefore in effect being ‘double financed’.
(ii) Ten yachts shown as assets by BYM cannot be located, with no explanation other than that they have not been sold. These yachts are worth approximately N50 million.
(iii) Long delays have occurred in performing reconciliations, with the last four months of reconciliations still not completed. At the time of the last reconciliation, material differences had been identified upon which no action appears to have been undertaken.
(iv) Sales have been overstated by N100 million in the current financial statements.
The finance director has been off sick with stress for the last five months and therefore has not been available to discuss any of the issues identified.

Required:

a. Explain the difference between fraud and error and how the issues shown here could be categorised as fraud or error. (6 Marks)
b. Discuss the role of management and the role of the auditor in the prevention and detection of fraud and error. (3 Marks)
c. Describe what steps you would take to further investigate and then report on the matters referred to above. (6 Marks)

Answer

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Tags: Audit Procedures, Error, Financial Misconduct, Fraud, Investigation
Level: Level 3

Topic: Ethical Issues in Auditing

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

Question

Investigation under investment decision will NOT include:
A. Loan facility decision
B. Purchase of shares
C. Purchase of business
D. Reporting on profit forecast
E. Partnership participation

Answer

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Tags: Financial Analysis, Investigation, Investment Decision, Profit Forecast
Level: Level 3

Topic: Assurance Engagements
Series: NOV 2012

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

Question

The terms of reference to be agreed by the investigating accountant with the client before commencement of work do NOT include the
A. Organisational and management structure of the entity to be investigated
B. Purpose of the investigation
C. Basis on which fees will be charged
D. General scope of work to be covered
E. Time within which the assignment will be carried out

Answer

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Tags: Client Agreement, Forensic Auditing, Investigation, Terms of Reference
Level: Level 3

Topic: Forensic Auditing
Series: NOV 2012

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

Question

Which of the following may NOT be taken into consideration when writing a report of an investigation?
A. The language of the report must take into consideration the technical knowledge of the users
B. The computation should be detailed in the body of the report
C. The subject-matter of the investigation must be clear from the heading of the report
D. Any reservation should be clearly stated in the body of the report
E. The users of the report must be clearly identifiable

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit, Investigation, Report Writing, Reporting Standards
Level: Level 3

Topic: Audit Reporting
Series: NOV 2013

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

Question

Summarising FIVE (5) areas that require further investigation, including reference to other pieces of information which would complement your analysis of the performance of Zeus Ltd.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Corporate Governance, Financial Reporting, Investigation, Performance Analysis
Level: Level 2

Topic: Financial Statement Analysis
Series: MAY 2021

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

Question

The Corporate Affairs Commission has the power to investigate the affairs of a limited liability partnership.

Required:
State FIVE grounds on which the CAC may investigate the affairs of a limited liability partnership.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Affairs Commission, Investigation, Limited Liability Partnership
Level: Level 1

Topic: Company Law
Series: MAY 2022

AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Question

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Error, Financial Misconduct, Fraud, Investigation
Level: Level 3

Topic: Ethical Issues in Auditing

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

Question

Investigation under investment decision will NOT include:
A. Loan facility decision
B. Purchase of shares
C. Purchase of business
D. Reporting on profit forecast
E. Partnership participation

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Analysis, Investigation, Investment Decision, Profit Forecast
Level: Level 3

Topic: Assurance Engagements
Series: NOV 2012

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Agreement, Forensic Auditing, Investigation, Terms of Reference
Level: Level 3

Topic: Forensic Auditing
Series: NOV 2012

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit, Investigation, Report Writing, Reporting Standards
Level: Level 3

Topic: Audit Reporting
Series: NOV 2013

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

Question

Summarising FIVE (5) areas that require further investigation, including reference to other pieces of information which would complement your analysis of the performance of Zeus Ltd.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Corporate Governance, Financial Reporting, Investigation, Performance Analysis
Level: Level 2

Topic: Financial Statement Analysis
Series: MAY 2021

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

Question

The Corporate Affairs Commission has the power to investigate the affairs of a limited liability partnership.

Required:
State FIVE grounds on which the CAC may investigate the affairs of a limited liability partnership.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Affairs Commission, Investigation, Limited Liability Partnership
Level: Level 1

Topic: Company Law
Series: MAY 2022

Question Tag: Investigation

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AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Required:

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Required:

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

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AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Required:

You're reporting an error for "AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing"

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements"

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing"

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting"

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

You're reporting an error for "FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation"

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

You're reporting an error for "BL – May 2022 – L1 – SB – Q5b – Company Law"

AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing

Identify and discuss fraud and error in the audit of Badagry Yachting and Marina.

Required:

You're reporting an error for "AAA – May 2016 – L3 – Q5 – Ethical Issues in Auditing"

AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements

This question assesses which elements are typically excluded from investigations related to investment decisions.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q10 – Assurance Engagements"

AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing

This question assesses knowledge of the terms of reference that should be agreed upon by the investigating accountant with the client.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q8 – Forensic Auditing"

AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting

This question tests understanding of considerations for report writing in investigations.

You're reporting an error for "AAA – Nov 2013 – L3 – A – Q1 – Audit Reporting"

FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation

Identify five areas needing further investigation regarding Zeus Ltd's performance.

You're reporting an error for "FR – MAY 2021 – L2 – Q4b – Areas Requiring Further Investigation"

BL – May 2022 – L1 – SB – Q5b – Company Law

State five grounds on which the CAC may investigate the affairs of a limited liability partnership.

You're reporting an error for "BL – May 2022 – L1 – SB – Q5b – Company Law"

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