AUDIT QUALITY, IMPORTANCE AND USEFULENSS OF EXTERNAL AUDIT

In light of a string of recent
and highly publicised audit failures in the UK, the management of Honest raised
serious concerns about the quality and usefulness of the External Audit.

REQUIRED:

In reference to the audit
quality and usefulness of external audit, highlight recent cases of Audit
failure in the UK and the resulting developments in Audit Practice and
Regulation, and discuss the safeguards that would improve Honests confidence
in the quality and usefulness of the External Audit.

MARKING GUIDE

MARKS
PART A

Audit risk model
5
Relevant ISAs and
IASs/IFRS
5
FIVE (5) audit risks:

the nature of the risk (1 mark
each)

type of audit risk (1 marks
each)

significance (2 marks each)

auditors response (2 marks
each)

rank above risks (high, medium,
or low) (1 mark each)
35

Conclusions and
recommendations
5
Part A
Total
50

PART B

Discussion and
analysis of Audit Quality and importance and usefulness of Audit
5
Example of cases of
recent audit failure in the UK, no older than 10 years, and resulting
developments in Audit Practice and Regulations
10

FOUR (4) reasons for poor audit quality/audit failure.
10
Safeguards
10
Conclusions and
recommendations
5
Part B
Total
40

Overall
academic writing including reference and bibliography.
10
Grade
out of 100
100
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