Question one

a) Define the term Financial auditing (5

marks)
b) Differentiate between Auditing and Accounting ( 5 marks)
c) Show the importance of auditing to public listed company (5
marks)
d) Differentiate between internal auditing and external auditing (5
marks)
Total =20 marks

Question two
a) Define the term audit evidence, which ISA is involved in audit evidence? ,just
mention (do not explain ISA) ( 5 marks)
b) Audit evidence includes accounting information and other information; just
mention five other information that supplement accounting information that an
auditor will use to form an audit opinion. (5
marks)
c) Very briefly, explain five methods of obtaining audit evidence (10
marks)

Question three.
a) What do you understand by term electronic working paper? (5 marks)
b) What are the weaknesses of electronic working paper when compared with
ordinary working paper? (5 marks)
c) Very briefly discuss contradiction existing on the ownership of audit working
paper? (6 marks)
d) What are the procedures when working paper get lost before audit opinion issued?
Clearly show how will suffer the consequences (4 marks)
Total = 20 marks

Question four
a) Define the term audit sampling risk (4 marks)
b) Briefly explain components of audit sampling risk in your explanation show
which one is seriously danger as far as auditor is concerned (10
marks)
c) Explain the negative effects of a company being issued with adverse opinion
(5 marks)
Total = 20 marks
Question five.
a) Just list down 5 international standards on auditing (ISA) number and their
meanings (for example ISA700, Auditor’s report on financial statement- do not
include this in your answer.)
(5 marks)
b) What are the considerations used before deciding on the uses of CAATs?
(10marks)
c) Just mention two IFRS and its meaning (do not explain) 5 marks
Total = 20 marks