Description
- What are the audit procedures for identifying contingent liabilities? (1 Mark)
- Discuss the theories of ethical behavior? (1 Mark)
- The following four situations require a modification to the standard unqualified/unmodified audit report. Identify the modification required for each. (1 Mark)
- Opinion based in part on the report of another auditor.
- Going concern.
- Lack of consistency.
- Additional emphasis.
- As an auditor of a reputed company in KSA explain how the Statement of retained earnings and Income Statement are audited. (2 Marks)
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
Running head: AUDITING PROCEDURES
Audit Procedures
Student's Name
Institutional Affiliation
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AUDITING PROCEDURES
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Audit Procedures
Elements of audit procedures include: providing, implementing, identifying, and
evaluating, which align with control quality and ethical requirements. There is a difference
between steps and procedures performed by the public-private audit companies. The difference is
the assimilation of public audit companies into public staff management (Melnyk, 2020). Causes
of the difference involve the absence of procedures to be followed that align with ethical
requirements.
Ethics is also defined as morality or standards that are valued and appreciated. The theory
of ethical behavior ensures that professionals follow moral obligations when conducting
business. CFA states that the candidates should express integrity and complete competence when
dealing with colleagues in similar or different professions (Mpho, 2017). However, many
financial accounting and audit firms have lost reputation as a result of dishonest actions.
Unqualified auditors may be replaced when they are not effective with appropriate
guidance AU-C section 705 (Levy, 2019). Modified opinions ensure that changes have to be
followed in making financial statements transparent. The auditors determine future procedures to
overcome misstatement when preparing financial statements.
The going concern is th...
