Audit 610 Presentation

8/12/2019 Audit 610 Presentation

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AUD 610QUESTION 13 14

MEMBERS:Nur Asmah Bt. Ismail

Fatimah Bt. JohariFarina Bt.Abd. MalikSiti Nur Atiqah Azhari


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QUESTION 12 A(APRIL 2

1.Not violated because the discount can be consider as a sthat not affected their opinion unless the discount he got iit can be violated.

2.Not violatedbecause she is the secretary of CEO not the csecretary of the company.

3.If he accept the gifts, it will be violatedbecause the amouthat he got is the big amount of cash money that can givetheir opinion.

a)


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QUESTIO

Q: Auditors are required to comply with theLaws on confidentiality pertaining to information. However, there are circumstanwill allow the disclosure of clients coninformation.


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1.Consent granted from the clients

1.Legal right or duty to disclose

1.Under obligation of court order


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Q.13 (A) (O

i) No Violation

Request made is likely to bring the convenience and possiblycost-effective of the audit.

When the auditors are familiar with the business nature are mto work efficiently than new auditors.

Senior in-charge must give adequately brief abt the co. andspecification during the job


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ii) Violate by law competency and due care

The audit firm should undertake necessary action to evaluateof trainee.

Senior in-charge should give task that he is capable to do.Supervise during audit field work

His work being reviewed by person at higher level such as pacharge.

iii) No violation

En. Kamarul made loan with the bank and not with the client

The amount of the loan is immaterial to the firm and to the c

Exception: loan or guarantee by bank & financial inst is consacceptable as the load is made under normal lending proce


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QUESTION

Q: Under section 10 (a) of the Accounta1965, MIA is empowered to establish By-Lawindoctrination of sound professional practthe prevention of illegal and dishon

practices of the profession. These By-Laws the principles and ethical rules of the memfollow in undertaking their professional work.


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(i) Explain the meaning of advertising, publicity andsolicitation as set out in the MIA By-Law.

Advertising

o The communication to the public of facts about a professional accview of procuring profession business.

Publicity

o The communication to the public of facts about a professional acc

Solicitation

o Various means that accounting firm use to engage new clients othaccepting new clients that approach the firm.


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ii) Provide two (2) examples of acts that are considerediscreditable to the profession under the MIA By-Law.

Sell client's information to their competitor.(BLPE 140Confidentiality)

Accepted expensive present such as car from clien

110 Integrity & 120 Objectivity)


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QUESTION

Q: An auditor must be independthe audit client in order to actprofessionally. The conceptual

approach to independencerequires that there is independenin fact and in appearance.


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(a) Explain the meaning of independence in fact anappearance.

1. Independence in fact/in mind

The auditor will be able to maintain unbiased attitude throughout the aud

2. Independence in appearance

It means how the auditor appeared to the outsiders of financial sin the eyes of shareholders.


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QUESTIONa)Violation the MIA By-Laws

Threat to independence (self-review threat).

Johan cannot provide audit,tax,management advisory and accounting for thecompany clients.

b)Violation the MIA By-Laws

BLPE 240 : General prof. fees charged shall be a fair reflection of the value of th

performed for the client. Fees would depends on skill and knowledge, level of training and experience,

each audit staff to finish the audit, degree of responsibility and work urgency.


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c)Not violation the MIA By-Laws

No conflict of interest, not a familiarity threat.

Ahmad is an audit partner of Ali, Ahmad & Co while his son is a fgraduate in Civil Engineering from UiTM which is employee of aud

d)Violation the MIA By-Laws

BLPE 110 Integrity & 120 Objectivity.

Members shall at all time be straightforward, honest & sincere.

Must be objectivity : fairness, honesty & free of conflict of interes

Involves pressures exerted on them ( must performed the field wweeks and worked until midnight toward the end of the audit).

BLPE 260 : Gift & hospitality : Audit clients staff paid for eveningthat the audit team could work with minimum disruption and canwithin the time frame.

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Audit 610 Presentation