The responsibilities of external auditors are not always well understood. When external auditors provide non-audit services to their audit clients, it is essential that the auditors make a clear distinction between their audit and non-audit responsibilities.
(a) Outline any three responsibilities of external auditors to the directors and shareholders.
(b) describe the limitations of the external audit in relation to the detection of fraud.
(c) describe why it is essential for external auditors to be independent of their clients and instances where this might not be the case.
(d) describe the advantages and disadvantages of external auditors providing consulting services to their audit clients.
There are different methods of obtaining audit evidence. describe the advantages and disadvantages of each of the four methods of evidence gathering listed below:
(a) Analytical procedures
(b) Audit sampling
(c) Tests of controls
(d) Detailed testing of transactions and balances
describe the advantages and disadvantages of each of the four methods of evidence gathering listed above.
List and describe the provisions of INTOSAI GOV 9140 on Internal Audit Independence in the Public Sector.