Auditing (AUD339)

d. Suggest any TWO (2) examples of compliance audits conducted by internal auditor in a trading company

Fraudulent financial reporting is intentional or reckless conduct acts or omissions that result in materially misleading financial statements. Confidence in the operation of capital markets is compromised when the system of public disclosure is eroded by reported instances of fraudulent reporting. Discuss any FOUR (4) ways to reduce the possibility of fraudulent financial reporting risks.

1.Professional skepticism is a crucial aspect of an auditor’s role in quality management during an audit. What factors could negatively impact auditor’s professional skepticism? (10 marks)

Discuss the key term in the definition of internal auditing below: I. Add value. II. Governance III. Systematic and disciplined approach