Question

Please answer all these questions

1-Explain the relationship among assurance service, attestation service and audit service?

2-What are the four primary causes of information risk and how to reduce the information risk – advantages and disadvantages of each method?

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3-Explain what is meant by: ‘degree of correspondence between information

and established criteria?’

4-What are the similarities and differences between: audit of financial statements, compliance audit and operational audit?

5-What is internal audit? Your discussion should include the purpose/objectives of internal audit, how it is executed and its importance in an audit environment.

6-. What is the difference between internal and external audit?

Answer 1

1. audit services include assurance and attestation. Auditing provide a reasonable assurance that financial statement are free from material misstatement whether due to fraud or error.

Assurance service is an independent professional service that improve quality of information for decision making.

CA issue report about the reliability of assertion that is prepared by another party is called attestation.

Now if we consider upper three, we an say that as an auditor. auditor have to perform attestation when he used opening balances for current year audit and assurance service when he is using information of current year. so thes three are inter related to perform audit.

6.Difference between internal and external audit:

a.internal auditor are the employees of the company and external auditor work for an audit firm.

b.internal auditor are hired by the company but external auditor are appointed by the shareholders.

c.internal auditor need not to be CA but external auditor should have degree of CA.

d.internal auditor are responsible to the management but external auditor responsible to shareholder.

e.internal audit work is conducted regularly but external audit is conducted once in a year.