Disadvantages of audit standard being enforced by law.

 If the audit standard were to be enforceable by statues it would mean that there would be government intervention in the areas currently controlled solely by profession itself. This might ultimately lead to diminished role of self regulation.

The following are disadvantage which the professional may face if auditing standard would be enforced by law/statutes.

To be enforceable by statues the standard would have to be applied to all circumstances and thus need to be very general and broad in their instruction. this might reduce their usefulness to the auditors.
Auditors might spend unnecessary time ensuring that they are complied with the laws rather than considering the quality of the services to their client.
Finally it should be considered whether fully statutory backing for standard would force auditors into narrow view and approaches which might gradually impair the quality of accounting and auditing practices.
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What is group audit?

job costing - meaning, categories and examples

According to ISA 600 group audits is the audit of group financial statements. Group include parent entity and its components. In group audit the group auditor who is usually the auditor of parent company even though these are technically two different assignment, audit the consolidated financial statement of the group. In performing the group audit the group auditor will have to make sure that the statement used to make the consolidated financial statement does not contain misstatement material to group as whole also he must make sure that the consolidation process is free from errors.  read more

Audit assertion supported by debtors confirmation letter.

 

One of audit procedure which auditor can perform to obtain audit evidence is external confirmation. to perform external confirmation the auditor send letter to knowledgeable  independent third party so that he can confirm balances with that third party. read more

Auditing and assurance revision question (NBAA C2, MAY 2017)

(a)    In the course of a new audit of a large established limited company, trading as multiple grocers you discover that no entry has been made for rents payable accrued to the date of the statement of financial position. You are told that it is not the company’s practice to make these accruals and that it is unnecessary to do so as the accounts for the year include a full year’s charge.  You subsequently ascertain that rates paid for a period extending beyond the end of the accounting year have not been carried forward in the statement of financial position but the statement of profit or loss contains a twelve months charge.

=&0=&
State the considerations that would determine your action in these circumstances.

=&1=&  As auditors of an entity you are examining clients account and you find that:

(i)    An intangible asset not included in the list of assets (not accounted for) and not amortized;

(ii)  An asset valued at an open market value to the amount that was in excess of its carrying amount  and the excess has been credited to revaluation reserves.

REQUIRED:
State the main points to which you would direct attention in each of these circumstance