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Review IV: Nicolescu Beatrice Medina Grup 803C - CIG ID
Review IV: Nicolescu Beatrice Medina Grup 803C - CIG ID
Review IV: Nicolescu Beatrice Medina Grup 803C - CIG ID
Review IV
II. MATCH these three roles ( the expressions are metaphors) with their best
definition: Definitions:
Roles:
1.Watchdog - a.Responsibility for overseeing a companys finances;
2.Bloodhound - c.Responsibility for tracking down the instigators of malpractice.
3.Whistle-blower - b.Responsibility for informing the authorities of malpractice;
III. MATCH the words in the first list with their best synonym in the second one:
1.to alert; - f.to warn;
2.to stumble upon; - e.to come across
3. to spot; - g.to notice;
4. To give a nod and a wink; - c.to consider right;
5.pro-active; - i.initiating;
6.to spell out; - d.to state clearly;
7. to see fit; - h.to inform indirectly;
8.impunity; - l.freedom from punishment.
9.to flout; - j.to openly ignore
10.solace; - b.consolation;
11.to impinge upon; - a.to affect;
12.a gulf. - k.an abyss;
3.Who are the persons employed by the banks to perform work in accordance with
the Acts specified and what are their obligations?
Auditors in the UK have a fundamental duty to comply with UK auditing standards
Banks will be required to appoint reporting accountants > auditors
a) they have been prepared on the basis of acceptable accounting policies that
have been consistently applied and are appropriate to the banks business;
b) the results of operations, state of affairs and other information disclosed in the
financial statements are compatible both with each other and with the auditors
knowledge of the bank;
c) there is adequate disclosure of all appropriate matters and the information
contained in the financial statements is suitably classified and presented; and
d) the financial statements comply with all statutory requirements and other
regulations that are relevant to the bank.
5.Can you mention the audit tests used by the auditors to form an opinion on the
financial statements?
- Compliance tests on systems
- Substantive tests
7.Are there any differences between work performed by the auditors and that
performed by the reporting accountants?
YES. The scope of the work performed by reporting accountants generally differs
in nature and extent from that performed by the auditors
In addition to their report on the financial statements, the auditors should
communicate to management any significant control weaknesses that they have
identified during the course of their work.
8.Can you specify the control types examined by the auditors and the reporting
accountants?
Auditor examine internal control, risks and control weakness
Reporting accountants preventive controls
The auditors may be content to rely on detective controls, which provide assurance
that any misappropriation or loss is properly reflected in the financial statements. The
reporting accountants may be more concerned with preventative controls, which reduce
the likelihood of loss. The reporting accountants examination of internal controls is
therefore likely to be wider in scope and extent than that of the statutory auditors.