ADVANCED AUDITING AND ASSURANCE WEEK 8 …

1 STARRY GOLD ACADEMY +2348023428420, +2347038174484, , Page 1 ADVANCED AUDITING AND ASSURANCE week 8 QUESTIONS TOPIC: CONCEPT OF JOINT AUDIT Kindly go through chapter 2 in the video lecture before you attempt the questions because the topic have been simplified and analyzed for easy understanding. QUESTION 1 After the preparation of the financial statement of an organization, there will be a need for the intervention of an independent person called an auditor to oversee the statement and also to form an opinion on the account that is examine by them in term of showing the trueness and fairness of the financial statement. Although, before the audit report is finalize, there must be a steps or procedure to be follow by audit partners and senior staff of both firms in order to review the audit and all working paper which may be available for inspection and others.

2 Also contact should be made and maintained between the firms throughout the audit so that both will be aware of any queries arising on the material matters associated with the audit and also to give insight on all account and the underlying records. Required: In a Joint audit there is strategies, steps and procedures to be followed in the course of audit engagement. Briefly discuss it? STARRY GOLD ACADEMY +2348023428420, +2347038174484, , Page 2 QUESTION 2 ABC limited is an Audit firm charge with the responsibilities of AUDITING the financial statement of the company in which ABC was appointed by XYZ to audit the account of it head office and branches across the country. XYZ has 30 branches in the county and the appointed AUDITING firm (ABC limited) was given one month to do all the audit in which the work may be too much for him. ABC LIMITED later decided to engage the services of the partners in audit due to the time frame.

3 Required: (A) In what way can you define Joint Audit and list the general matters that may occcur during Joint Audit engagement. (B)State the Advantages and Disadvantages of Joint Audit. STARRY GOLD ACADEMY +2348023428420, +2347038174484, , Page 3 QUESTION 3 Once an audit assignment being carried out by two or more partners in audit, there must be procedures,steps,strategies,duties and responsibilities which must be agreed upon by the concerned auditors which must be set out in writing and duly signed by the auditors involved so that adequate reasonable care and skills will be put in place in performance of task and also there must be a stated agreement on how to form opinion on the financial statement examine by them before publication of audit report. Required: (A)What are the purposes for joint audit? (B) Write briefly on the agreements that must be present or installed before entering or executing a joint audit?

4 (C) List the issue that may be encountered during joint audit assignment?