.

cinammon: Please I kinda need assistance 4rm d above profession or intelligent students in both fields.M currently workin on some practical questions on audit (m in my final year) its part of my assesment so its important..pls if ders,pls respond so I cn bring in d questions...thnks in anticipation
Urs sincerely..

What is the question?

what is your question i am a specialist in financial management

Solved. Thanks

cinammon: Thanks guys,I really appreciate..

When you as an auditor finds in a published financial statement,accounts payable whithin one year,an overdraft of over 1.5 million;
1)Will you comment?
2)If yes what will your comment be?
3)If you choose not to comment,why?
4)And what do you anticipate of the readers (your clients?)

*there are stil abt 4 more questions buh I thot I shud bring them in 1 by 1...God bless.

Can a statement not signed by the auditor be published at the first instance

@TEXZLEM nd @butta where r u guys nau

@cinammon
to answer your no 1 question
an auditor is required to comment because A company's auditor, in preparing his report, must carry out investigations which will enable him to form an opinion on what to comment on.

no 2 the auditor should just state the facts in his reports because he is bound to act honestly with care and skill or else he will be sued for damages

my no 2 reply is an answer to your number 3 question

no 4 question answers is
It's an auditor's job to help clients identify and fix any potential risks within their organizations. However, this frequently means there will be some harsh criticisms of the way companies currently do business, particularly if their operations leave them open to a multitude of potential threats.

While most auditor-client relationships go without any significant hitches, some high-level executives may be difficult to work with or even openly adversarial. While there is very little auditors can do to change this, they should look to smooth any bumps in the road by doing their jobs to the best of their abilities.

Thanks

cinammon: Thanks guys,I really appreciate..

When you as an auditor finds in a published financial statement,accounts payable whithin one year,an overdraft of over 1.5 million;
1)Will you comment?
2)If yes what will your comment be?
3)If you choose not to comment,why?
4)And what do you anticipate of the readers (your clients?)

*there are stil abt 4 more questions buh I thot I shud bring them in 1 by 1...God bless.

1. I'll comment based on the Materiality principle i.e how material is the N1.5m overdraft facility to the company? Will the inclusion and the size of this amount in the FS distort the views of users of d FS? In doing this, d auditor needs to carry out an analytical review of the OD in the B/sheet using ratio analysis and see how it compares with the company's current assets(stocks, debtors, etc) and thus determine the extent of risk exposure of the company in terms of solvency, and in doing this the auditor can now form an opinion based on the review carried out and the conclusion reached on that.

2. The auditor's comment can be based on how fundamental and material the OD is to the company. Just like i said before, if the size of the OD is too large compared to the size of the coy's current assets so as to make the coy vulnerable of being insolvent, then the auditor's comment may be adverse, and management's attention brought to it.

3&4. You can take a cue on what has been said above in answering these.

Peace!

Thank you

Certified Fraud Examiner(CFE) 2016 material international version is available in pdf


if you are intrested, contact me