Question

Auditing I Assignment I A. Majdi has a degree in accounting from BZU and works for a local accounting office. He was asked by a friend to prepare Financial statements for a small company in Ramallah. To help his friend Majdi prepared the financial statements and a report indicating that the financial statements were audited by him. What standards were violated and why? Is there a violation of the elements of audit quality control, briefly discuss?

what standard from these standards had been violated at this case, and why ?
Standards :

please i want it quickly

Answer 1

Yes, there has been a violation of the elements of audit quality control.

The standards that have been violated are :

1) General Standards - Majdi has a degree in accounting, which doesnt qualify him to be an auditor.He must possess a professional qualification to Audit any financial statement.

2) Standards of field work - Majdi himself prepared the financial statements of the company and issued a report indicating that the statements have been reviewed by him. The preparer of the financial statements and the auditors must be two separate entities/individuals. Since in this current instance the preparer of the financial statements and the issuer of audit report is the same, we can conclude that sufficient field work wasn't conducted to issue the Audit report.

3) Standards of Reporting - The problem states that Majdi prepared a report indicating that the statements were audited by him. There are regulatory requirements for issuing an Audit report and going by the information provided in this instance, Majdi didnt issue the audit report as per the Standards of Reporting.