PROCEDURES FOR AUDITING TRANSACTIONS III – LIABILITY VERIFICATION

1.0 INTRODUCTION In general terms, liabilities refer to obligations that result from past transactions to pay for assets or rendering of services. Liabilities can be classified into two major groups as follows:  Current liabilities – liabilities or debts that are payable within a short period of time, usually, within one year; Long-term liabilities – liabilities…

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INTRODUCING COOPERATIVE AUDITING

1.0 INTRODUCTION Cooperatives today, play a prominent role in different economies, and although cooperation is a voluntary movement of the public at large, there has been considerable state participation in the development of cooperative movement in many countries. Mahatma Gandhi had envisaged that the cooperative movement is a tool for eradication of poverty when he…

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LEGAL POSITION AND LIABILITY OF AUDITORS

1.0 INTRODUCTION The law has relevance for auditors, especially, with regard to their rights, obligations and liabilities. In this unit, you shall be looking at the effects on auditors of the Companies and Allied Matters Act of 1990, the provisions in the Act establishing the relevant accountancy bodies (especially the Institute of Chartered Accountants of…

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AUDIT REPORTS

1.0 INTRODUCTION The Companies and Allied Matters Act (CAMA) of 1990 and the Fourth Standard of reporting provide that an auditor should report on the financial statements under examination to show if those statements present a true and fair view of the financial position of the firm. If the firm’s financial statements do not present…

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OVERVIEW OF AUDITING

1.0 INTRODUCTION Auditing is a process of examining and reviewing the accounting transactions in order to give assurance that the financial statements present the financial position of the firm fairly, as at a particular period. We can also refer to auditing as attestation to the true and fair view of financial statements of a business….

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AUDIT RISKS-TYPES

1.0 INTRODUCTION The term ’audit risk’ refers to the possibility that the auditors may unknowingly fail to appropriately modify their opinion on financial statements that are not well stated. It can also be stated that audit risk means the chance of damage to the audit firm as a result of giving an audit opinion that…

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CLASSIFICATION OF AUDIT

1.0 INTRODUCTION In this unit, you shall be exposed to the classification of audit in a greater detail – classification by nature as well as by method of approach. Also, you will learn how the provisions of the Companies and Allied Matters Act (1990) affect the auditor. Finally the Generally Accepted Auditing Standards will be…

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