Professional Judgment

AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

Question

Question:
ISA 500: Audit Evidence provides guidance for auditors intending to rely on the work of a management’s expert. If the information to be used as audit evidence has been prepared using the work of a management’s expert, the auditor must evaluate the management’s expert.

Required:
i) Explain the term “management’s expert.”
ii) Explain FOUR factors to consider before relying on the work of a management’s expert as audit evidence.

Answer

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Tags: Audit evidence, Audit Reliability, External audit, Financial Reporting, Management’s expert, Professional Judgment, Risk Management
Level: Level 2

Topic: Audit and Assurance Evidence
Series: Nov 2024

AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

Question

(b) You are a senior manager in Nnamdi & Co, a firm of Chartered Accountants in Nigeria. Recently, you have been assigned specific responsibility for undertaking annual reviews of existing clients. The following situations have arisen in connection with three clients:

i. Nnamdi & Co was appointed auditor and tax advisor to Unicorn Co last year and has recently issued an unmodified opinion on the financial statements for the year ended March 31, 2016. To your surprise, the tax authority has just launched an investigation into the affairs of Unicorn on suspicion of under-declaring income.
(7 Marks)

ii. The chief executive of Hassan Co., an exporter of specialist equipment, has asked for advice on the accounting treatment and disclosure of payments being made for security consultancy services. The payments, which aim to ensure that consignments are not impounded in the destination country of a major customer, may be material to the financial statements for the year ending December 31, 2015. Hassan does not treat these payments as tax-deductible.
(4 Marks)

iii. Your firm has provided financial advice to the Adetunji family for many years and this has sometimes involved your firm in carrying out transactions on their behalf. The eldest son, Verni, is to take up a position as a senior government official to a foreign country next month.
(4 Marks)

Required:
Identify and comment on the ethical and other professional issues raised by each of these matters and state what action, if any, Nnamdi & Co should now take.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Review, Client Relations, Ethical Concerns, Professional Judgment, Tax Investigation
Level: Level 3

Topic: Ethical Issues in Auditing

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

Question

(b) Discuss the advantages and disadvantages of auditing standards to auditors and the consequences of them being enforceable by statute. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Framework, Auditing Standards, Professional Judgment, Regulatory Framework, Statutory Audit
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2016

AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

Question

Required:
i) Explain the term “management’s expert.”
ii) Explain FOUR factors to consider before relying on the work of a management’s expert as audit evidence.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Reliability, External audit, Financial Reporting, Management’s expert, Professional Judgment, Risk Management
Level: Level 2

Topic: Audit and Assurance Evidence
Series: Nov 2024

AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

Question

Required:
Identify and comment on the ethical and other professional issues raised by each of these matters and state what action, if any, Nnamdi & Co should now take.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Review, Client Relations, Ethical Concerns, Professional Judgment, Tax Investigation
Level: Level 3

Topic: Ethical Issues in Auditing

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

Question

(b) Discuss the advantages and disadvantages of auditing standards to auditors and the consequences of them being enforceable by statute. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Framework, Auditing Standards, Professional Judgment, Regulatory Framework, Statutory Audit
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2016

Question Tag: Professional Judgment

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AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

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AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

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AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

You're reporting an error for "AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing"

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

You're reporting an error for "AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,"

AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence

Explain the term "management’s expert" and four factors to consider before relying on their work as audit evidence.

You're reporting an error for "AA – Nov 2024 – L2 – Q3a – Management’s Expert and Audit Evidence"

AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing

Discuss the implications of a tax authority investigation into a client after an unmodified audit opinion.

You're reporting an error for "AAA – May 2016 – L3 – Q2b – Ethical Issues in Auditing"

AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,

This question discusses the advantages, disadvantages, and consequences of enforcing auditing standards by statute.

You're reporting an error for "AA – May 2016 – L2 – Q1b – Audit and Assurance Evidence,"

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