Question

Nasir is working in Mazars Audit company since many years. Based on his professional attitude
and commitment, he has been promoted twice in the last two years. Nasir has a good experience
of auditing corporate industries. According to the company’s schedule before Ramadhan, Mazars
audit decided to visit Cement industry for their annual audit in Sur in the first week of April 2020.
Cement industry is a very high profile industry and one of the largest in A’Sharqiyah Region.
The management of Mazar audit had a meeting to decide the audit team to be sent to Sur. The
audit team consists of 10 members and all the members will be reporting Nasir during the audit.
Next day, Nasir called the meeting with his team members and decided the plan for the audit. All
the members have been given different tasks and responsibilities. As per schedule, Nasir and team
have started the audit.
Initially the audit was according to the plan, all the members were busy performing their job.
Certain things got exposed during the audit, which needs to be examined thoroughly. This was
brought to Nasir’s notice and he contacted his head office in Muscat. It was decided to extend the
audit for another three days.
a. In your opinion, what suggestions would Nasir give to his team members in this limited time
period? State different challenges faced by Nasir and his team in order to complete the audit
successfully.
b. What would be the impact of audit on the Cement industry and its stakeholders? How can they
improve their financial position with effective audit?

Answer 1

Facts of the Case: Nasir, Audit expertise person, having robust expereince in Audit, currently handling team of 10 members. While amid of finalising the report, a major exposure observed which cause abeyance of audit report by 3 more days, and change in focus area also.

a.  In your opinion, what suggestions would Nasir give to his team members in this limited time
period? State different challenges faced by Nasir and his team in order to complete the audit
successfully.: In this limited time period, Nasir can divide his team in two groups which can focus on audit activity as per planned and other group will focus on the major exposure issue, as the time is very less and are very closure to the report it means only a fews areas need to be evaluated apart from " MAjor Exposed area", so 4 members can handle regular activity and rest member will handle the " MAjor Exposed area" as they have time constraints.

Challenges faced by the Nasir are:

- Reponse of the Management

- Delay in Documenattion

- Time COnstrainst

- Extensive or expedite the process of Auditing

- Other issue smay remian unfocuesd.

b. What would be the impact of audit on the Cement industry and its stakeholders? How can they
improve their financial position with effective audit?: The Impact on audit of Cement industry can be in any way, if the report inlcudes the impact the major exposure has in the industry , can recommend the relevant changes require din process and control to prevent the risk and frauds. Bottom line and Top line both may get hit, Strict government regulations may be hit.

Same can be improved by making improved changes in the process and plans in the earlier followed process and control to be in place which are consistent to addresss the changes reported in the market.

Secondly report in the audit that change sneed to be places is the management responsibility. Proper control may bring the chances of exposure to the tolerable level.