FACULITY OF BUSINESS AND MANAGEMENT

BACHELORS OF BUSINESS ADMINISTRATION

JUNE 2021, CONTINUOUS ASSESSMENT TESTS: AY 2019/2021

AUDITING AND QUALITY ASSURANCE

YEAR 3 SEM 2

NAME: OKUMU ALEX ODONGO

REGNO: 19/8/TU/134/BBAW

CENTRE: PAKWACH STUDY CENTRE

LECTURER: Ms. NDYAGENDA CATHERINE

QN 3
QN 1
3.

The following are the statutory and professional obligations the auditor has to achieve during the
audit examination.

The basic principles of auditing are planning, honesty, secrecy, audit evidence, internal control system, skill
and competence, work done by others, working papers, and legal frameworks.

Objectivity

The audit report should not be biased, carry conflict of interest or undue influence of others to override
professional or business judgments thus his report should be objective oriented.

Compliance

The auditor is obliged to comply with all the legislations and adhere to professional knowledge and skill at
the level required to ensure that a client or employer receives competent professional service based on
current developments in practice, legislation, and techniques.

Confidentiality

An auditor is also obliged to ensure confidentiality of information acquired as a result of professional and
business relationships and should not disclose any such information to third parties without proper and
specific authority unless there is a legal or professional right or duty to disclose.

Honesty

The examination report by the auditor should done with honesty so that it portrays what is in the company.

Impartial

The auditor should not be influenced by any bias in discharging his duties. He should be impartial and his
report.

1a)

Audit Program

An audit program is a set of directions that the auditor and its team members need to follow for the proper
execution of the audit. After preparing an audit plan, the auditor allocates the work and prepares a program
which contains steps that the audit team needs to follow while conducting an audit. Thus, an auditor
prepares a program that contains detailed information about various steps and audit procedures to be
followed by the audit.

Using a wholesale as a business of choice. This has three important activities that need audit program namely
cash and purchase.

Audit Program for Purchase

The Audit Program for Purchase/Purchase Return involves the review and check of the following –
  Complete accounting system right from the issuance of purchase orders to suppliers till the payment
to suppliers/creditors against the purchase invoice.
 Checking of department-wise material requisition slips.
 Authorization of requisition slips and purchase orders.
 Comparison of quantity and rate of purchase bills with purchase order.
 Material inward record with purchase bills.
 Checking of Stock register.
 Checking of purchase return note with purchase bills.

A program for the audit of cash

 Checking of the opening balance.

 The checking of petty cash
 The checking cash book
 Checking cash receipt and payment voucher
 Authorization for cash payments
 Comparison with the bank statement
 Surprise check of cash balance
 Cash summary
 Examination of direct deposits by the third parties