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ACC311 Current Final Term Fall 2013 Shared by Irfan

Today’s Paper
Total Questions = 64 Total Marks = 88Total 1 Mark MCQ = 56
Total 3 Marks Short Questions=4 Total 5 Marks Long Questions =4
What steps an auditor should take in order to ensure that the reserves are properly classified and described in the accounts in accordance with the Companies Ordinance, 1984?

Throughout the 1960s and 70s, the largest accounting firms devoted extensive resources to the development and implementation of statistical sampling procedures. Enlist several sample selection methods now available to an auditor for selecting items in the populations.

Suppose you have been appointed as an auditor of a manufacturing company. You are at the stage of testing the purchase system. According to your knowledge of Auditing Standards, what control objectives would you develop in respect of the Purchase system of the entity?
Discuss the factors which influence auditor s judgment regarding sample size for tests of control.

Suppose that your supervisor has asked you to carry out an internal control review of the inventory system of a manufacturing company. What internal control procedures would you examine in respect of the following functions of the inventory system?
1. Arithmetical Accuracy
2. Control Accounts
3. Access to Assets and Records
A company has hired auditors at the year end. Auditors used audit sampling techniques which made them enable to gather audit evidence efficiently. State the objectives auditors might have defined first to achieve by using sampling techniques and also briefly explain further steps the auditors might undertake to complete the sampling process.




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