ADVANCED AUDIT AND ASSURANCE WEEK 7 QUESTIONS TOPIC: PROFESSIONAL STANDARD SETTING AND NON FOR PROFIT AUDIT

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1 ADVANCED AUDIT AND ASSURANCE WEEK 7 QUESTIONS TOPIC: PROFESSIONAL STANDARD SETTING AND NON FOR PROFIT AUDIT QUESTION 1 Every Economy being Socialist, Capitalist and mixed have rules and regulations guiding the preparation, presentation and implementation of Budget across the nation. In Nigeria, there are some statutory bodies that are recognize by law in pronouncement of some standards and guidelines adopted and implemented across the nations which helps in the preparation and presentation of financial statement so that the meaningful decision can be made when the need arises. (A)Explain your understanding on IASSB? (B)What are the purposes, objectives, pronouncements, members and the meeting procedures for IASSB? (C)Define due process of IASSB and itemize how they are applicable to the development of all IAASB standards. STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 1

2 QUESTION 2 One of the main reason or purposes of every organization after making profit as there watch dog is to engage their business transaction within and outside the country.although,it is obliged that every company or organization that engage in business transaction must have a certain standard setting so that it can help or assist in the effective and efficient preparation and presentation of the financial statement and also to promote and protect the interest of the members of the public by producing high-quality goods and services by knowing the mind of the people through the respective committee set up to survey the business environment both internally and externally. (A) Define Standard setting. (b) Explain your understanding on (I) SSB and IFAC Committee (II) Steering Committee (III) Task Forces (IV) CAGs (V) Public Interest Oversight Board (PIOB) (VI)MG STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 2

3 QUESTION 3 Business Organization may be centered on profit motive and none for profit motive depend on the aims and objectives of such business. The non for profit making organization like Clubs, societies and charitable organizations provide welfare services to their members as well as promotion of group of activities. In order to increase their financial base, many nonprofit making association run bars, restaurants and other commercial activities. Under cooperate societies that emphasize on promoting and protecting the favorable image of business enterprise of members as well as assisting them in all areas of financial and nonfinancial issues. For someone to have access or belong as a members, he/she must be ready to follows some rules and regulation guiding the organization and also must disclose all relevant information that may or may not likely affect the organization when the need arises. (A)Define NON FOR PROFIT MAKING ORGANIZATION? (B)In what ways can an Auditor place more emphasis or interests when auditing a NON FOR PROFIT MAKING ORGANIZATION? (C)State the audit procedures for NON FOR PROFIT MAKING ORGANIZATION. STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 3

4 QUESTION 4 Every day to day activities we engage ourselves involves one risk or the other. On like some philosopher that brought a MAXIM that risk and success works together and the person that fail to undertake a risk is not ready to be successful in life. Even rendering of services or engaging in commercial business are also exposed to some certain risk being internally or externally depend on the nature of that kind of businesses. It is expected of a good entrepreneur to identify, analyze and take appropriate measures in order to control such risks so that the future goal or objectives of that organization can be achieve at a particular point in time. For any given risk to be control and corrected, there must be appropriate measures that must be put in place such as identification of risk, understand, analyzed and choosing the possible solution out of the alternate ones be discovered. (A) What is Risk and Audit risk? (B) What are the importance of Audit risk to the Auditor? (C) What are the relevance of ISA to the audit risk? (D) Itemize the analytical procedures for audit risk. STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 4

5 QUESTION 5 (A)Define Audit risk model. (B)What are the components of audit risk model? (C) What do you understand by the word Risk assessment? (D)Describe the process of risk assessment? (E)State the Steps involves in Audit Process in Relation to Planning. STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 5