Question 2b
Marking Guide
| (i) | up to 1 mark per valid point | |
| written agreement of terms of engagement | ||
| avoid misunderstandings | ||
| max marks | 1 | |
| (ii) | ½ mark per valid point | |
| – objective/scope | ||
| – responsibilities of auditor | ||
| – responsibilities of management | ||
| – identification of framework for financial statements | ||
| – form/content reports | ||
| – elaboration of scope | ||
| – form of communications | ||
| – some misstatements may be missed | ||
| – arrangement for audit | ||
| – written representations required | ||
| – fees/billing | ||
| – management acknowledge letter | ||
| – internal auditor arrangements | ||
| – obligations to provide working papers to others | ||
| – restriction on auditor’s liability | ||
| – arrangements to make draft financial statements available | ||
| – arrangements to inform auditors of subsequent events | ||
| max marks | 3 |