Case
AUE2601 Assignment 2 Second Semester 2022
- Course
- Institution
This document contains a written assignment for second semester 2022. Please use your own words to avoid plagiarism
[Show more]
Seller
Follow
TheTeachingMachine
Reviews received
Content preview
AUE2601ASSIGNMENT 2
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
1
, PLEASE EDIT SOME POINTS TO AVOID PLAGIARISM
QUESTION 1
With reference to the “background information” and “preliminary engagement
activities and planning” information:
Describe the preconditions for an audit that should be met before an
audit clientcan be accepted.
In terms of ISAs an audit engagement can only be accepted if; the auditor has
establishedwith the client that the preconditions for an audit are present
Preconditions for an audit
The acknowledgement by management that it understands its
responsibilities to provide unrestricted access to persons within the
company from whom the auditor determines it is necessary to obtain
audit evidence
The financial statements are prepared in terms of an acceptable
financial reportingframework
An acknowledgement by management that it is responsible for
such internal control as it (management) determines is necessary
to enable the preparation of financial statements which are free
from material misstatements.
The auditor should acquire preliminary engagement information, in order
to decide whether to accept a new audit client. Describe the procedures
ZPK could have followed to acquire preliminary information about AST,
before accepting AST as a client.
Procedures the auditor could use to obtain preliminary information on the
business areas follows:
communication with the previous auditor (in compliance with the
Code of Professional Conduct)
Discussion with the client’s directors, senior financial personnel, audit committee
and so on · external sources: inquiries from the firm’s bankers, legal counsel and
so on (permission would have to be sought)
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheTeachingMachine. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.70. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now