A-BPP

1. List five elements of assurance engagement and explain them

SUALA BIRBAŞA CAVAB:

2.Main distinctions between internal and external audit.
İsteseniz ilk ext audit ve int audit nedirle baslamaq olar.
External audit:

Internal audit:
3.Define and provide objectives of audit engagement.(BU SUAL BPP-də başlığın
adıdır) ☹

CHATGPT-DEN DE OLANI SONA YAZDIM.

Kitabda da bu melumatlar var.Melumat coxdur,amma mence,uygun 4.1;4.2 ve 4.3-dur.

AMMA ASSURANCE ENGAGEMENT ILE BAGLI HER MELUMATI YERLESDIRDIM.
 An audit engagement refers to the process in which an independent auditor examines an
organization's financial statements and other relevant financial information to express an
opinion on whether they are prepared in accordance with generally accepted accounting
principles (GAAP) or another applicable financial reporting framework. The primary objective
of an audit engagement is to provide assurance to stakeholders, such as shareholders,
creditors, and regulatory bodies, regarding the accuracy and reliability of the financial
information presented by the audited entity. Here are the main objectives of an audit
engagement:

1. Express an Opinion: The primary objective of an audit engagement is to express an

opinion on whether the financial statements are presented fairly in accordance with the
applicable financial reporting framework. The opinion can be unqualified (meaning the
statements are fairly presented), qualified (indicating certain issues or limitations), or
adverse (indicating significant discrepancies).
2. Detect Material Misstatements: Auditors aim to identify material misstatements in the
financial statements, whether due to errors or fraud. Material misstatements are those that
could influence the decisions of financial statement users. Auditors must perform procedures
to detect and correct these misstatements.
3. Compliance Assessment: In some cases, an audit engagement may include evaluating
the entity's compliance with relevant laws and regulations, which can be important for
regulatory bodies and other stakeholders.
4. Provide Assurance: The audit engagement aims to provide reasonable assurance to
stakeholders that the financial statements are free from material misstatements. This
assurance increases the credibility and trustworthiness of the financial information.
5. Enhance Financial Reporting Quality: The audit process can help organizations improve
their internal control systems and financial reporting processes, ultimately leading to higher-
quality financial reporting.
6. Evaluate Internal Controls: Auditors may assess and report on the effectiveness of the
entity's internal controls over financial reporting, especially in the context of audits of public
companies subject to regulations like the Sarbanes-Oxley Act in the United States.
7. Risk Assessment: Auditors need to understand the entity's internal and external risk
factors, including fraud risks, and design their audit procedures to address those risks
effectively.
8. Materiality Consideration: Auditors consider materiality when planning and performing
the audit. Materiality helps in determining the significance of errors or misstatements that
need to be corrected or disclosed in the financial statements.
9. Communication: Auditors communicate their findings, including any identified issues or
deficiencies, to management, the board of directors, and other relevant stakeholders to
provide transparency and promote corrective action.
10. Independence and Professional Skepticism: Auditors must maintain independence and
exercise professional skepticism throughout the engagement to ensure objectivity and
thoroughness in their examination.
11. Documentation: Maintain comprehensive audit documentation that provides evidence of
the work performed, including the auditor's procedures, findings, and conclusions.

1. Rights and duties of an auditor.

2. Explain advantages of having an Audit Committee.

3. Explain the audit risk and its difference with business risk.
 BUSINESS RISK-CHATGPT

1. Business Risk: Business risk, on the other hand, is the risk associated with
the operations and financial performance of the company itself. It is the risk
that external factors or events can negatively impact the company's ability
to achieve its financial objectives or generate sustainable profits. Business
 risk is primarily concerned with the day-to-day risks a company faces in its
normal course of operations.
Business risk can be influenced by various factors, including economic
conditions, competition, regulatory changes, market fluctuations,
technological advancements, and strategic decisions made by the company's
management. This risk is inherent in every business and cannot be
eliminated entirely.

Key Differences:

1. Purpose:
 Audit risk is specifically related to the risk that the auditor may issue
an incorrect audit opinion.
 Business risk pertains to the broader risk factors that can impact a
company's financial performance and long-term sustainability.
2. Focus:
 Audit risk focuses on the accuracy of the financial statements.
 Business risk focuses on the operational and financial aspects of the
company.
3. Management:
 Auditors manage audit risk by adjusting their audit procedures and
assessments of inherent and control risks.
 Companies manage business risk by implementing strategic decisions,
risk management policies, and adapting to changing market
conditions.

In summary, audit risk is a concept relevant to auditors, primarily concerned

with the accuracy of financial statements, while business risk is a broader
concept relevant to business managers and investors, focusing on the risks
inherent in a company's operations and its ability to achieve financial
objectives.

1. Explain the audit risk and the difference with business risk.B-DE VAR BU.
 BUSINESS RISK-CHATGPT

2. Business Risk: Business risk, on the other hand, is the risk associated with
the operations and financial performance of the company itself. It is the risk
that external factors or events can negatively impact the company's ability
to achieve its financial objectives or generate sustainable profits. Business
risk is primarily concerned with the day-to-day risks a company faces in its
normal course of operations.
Business risk can be influenced by various factors, including economic
conditions, competition, regulatory changes, market fluctuations,
technological advancements, and strategic decisions made by the company's
 management. This risk is inherent in every business and cannot be
eliminated entirely.

Key Differences:

4. Purpose:
 Audit risk is specifically related to the risk that the auditor may issue
an incorrect audit opinion.
 Business risk pertains to the broader risk factors that can impact a
company's financial performance and long-term sustainability.
5. Focus:
 Audit risk focuses on the accuracy of the financial statements.
 Business risk focuses on the operational and financial aspects of the
company.
6. Management:
 Auditors manage audit risk by adjusting their audit procedures and
assessments of inherent and control risks.
 Companies manage business risk by implementing strategic decisions,
risk management policies, and adapting to changing market
conditions.

In summary, audit risk is a concept relevant to auditors, primarily concerned

with the accuracy of financial statements, while business risk is a broader
concept relevant to business managers and investors, focusing on the risks
inherent in a company's operations and its ability to achieve financial
objectives.

2. What is materiality for the financial statements as a whole and why we need it.
CHATGPT-NIN CAVABI SONDA
 Materiality in the context of financial statements refers to the significance or
importance of information in relation to the financial statements as a whole. It
involves assessing whether certain information, if omitted or misstated, could
influence the decisions of users relying on the financial statements.The concept of
materiality is crucial for several reasons:

1. Decision-making: Financial statements are used by various stakeholders, such as

investors, creditors, and management, to make informed decisions. Materiality
 helps ensure that only information that could impact these decisions significantly is
included in the statements.
2. Relevance: Material information is relevant, meaning it has the potential to impact
the economic decisions of users. Including immaterial details could lead to
information overload and distract users from key decision-making factors.
3. Cost-effectiveness: Determining materiality helps in allocating resources
efficiently. Focusing on material information ensures that resources are not wasted
on providing excessive detail on immaterial matters.
4. Audit focus: During the audit process, auditors concentrate on material items,
reducing the risk of overlooking significant errors or fraud. This allows for a more
effective and efficient audit.
In summary, materiality ensures that financial statements provide a true and fair
view of an entity's financial position and performance by emphasizing the inclusion
of information that is significant for decision-making while avoiding unnecessary
details.

3. List 5 main threats to independence and explain them.

D

1.Describe the limitations of external audit.

2.Discuss the factors to be taken into consideration when assessing the need for
internal audit.
3.List assertions relevant to the audit of tangible non-current assets and state one
audit procedure which provides appropriate evidence for each assertion.
E
1. Explain components of audit risk.

2. List three factors that influence the reliability of audit evidence

Source-KAPLAN And BPP
3. List the components of an internal control system
F

1. Explain risk assessment process

KAPLAN
2. Explain control environment.
BPP

KAPLAN
3. Explain the audit risk and the difference with business risk
BUSINESS RISK-CHATGPT
Business Risk: Business risk, on the other hand, is the risk associated with the operations
and financial performance of the company itself. It is the risk that external factors or events
can negatively impact the company's ability to achieve its financial objectives or generate
sustainable profits. Business risk is primarily concerned with the day-to-day risks a company
faces in its normal course of operations.
Business risk can be influenced by various factors, including economic conditions,
competition, regulatory changes, market fluctuations, technological advancements, and
strategic decisions made by the company's management. This risk is inherent in every
business and cannot be eliminated entirely.

Key Differences:
 1.Purpose:
 Audit risk is specifically related to the risk that the auditor may issue an incorrect
audit opinion.
 Business risk pertains to the broader risk factors that can impact a company's
financial performance and long-term sustainability.
2.Focus:
 Audit risk focuses on the accuracy of the financial statements.
 Business risk focuses on the operational and financial aspects of the company.
3.Management:
 Auditors manage audit risk by adjusting their audit procedures and assessments of
inherent and control risks.
 Companies manage business risk by implementing strategic decisions, risk
management policies, and adapting to changing market conditions.

In summary, audit risk is a concept relevant to auditors, primarily concerned with the
accuracy of financial statements, while business risk is a broader concept relevant to
business managers and investors, focusing on the risks inherent in a company's operations
and its ability to achieve financial objectives.