Exam (elaborations)
AUE2601-S2-24-ASSESSMENT-1-WITH A 100% PASS ALL QUESTIONS AND ANSWERS AND CORRECTIONS
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AUE2601 Assignment 1 Semester 2- 2024 All Questions are Covered
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AUE2601-S2-24-ASSESSMENT 1Started on Thursday, 22 August 2024, 9:28 AM
State Finished
Completed on Thursday, 22 August 2024, 10:11 AM
Time taken 42 mins 10 secs
Grade 24.00 out of 30.00 (80%)
Question 1
Correct
Mark 2.00 out of 2.00
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Question text
Match the correct description of the following threats to compliance with the fundamental
principles:
Professional accountants quote a low fee to obtain a new
engagement, but the fee is so low that it might be difficult to Answer 1
perform the professional service in accordance with applicable
technical and professional standards of practice.
A professional accountant has prepared the original data used to
Answer 2
generate the records that are the subject matter of the assurance
engagement.
A professional accountant lobbies in favour of legislation on behalf Answer 3
of a client.
A professional accountant has a close family member who is the Answer 4
director of the client.
A professional accountant accepted a significant gift from a client Answer 5
and threatened that acceptance of the gift will be made public.
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Your answer is correct.
References
· Code of Professional Conduct, sections 300.6 A1, included in SAICA student handbook,
Volume 2B
· Auditing notes for South African students (2021): 2/22–2/37
Threat Description
Self-interest threat Professional accountants quote a low fee to obtain a new engagement,
but the fee is so low that it might be difficult to perform the
, AUE2601-S2-24-ASSESSMENT 1
professional service in accordance with applicable technical and
professional standards of practice.
Self-review threat A professional accountant has prepared the original data used to
generate the records that are the subject matter of the assurance
engagement.
Advocacy threat A professional accountant lobbies in favour of legislation on behalf of a
client.
Familiarity threat A professional accountant has a close family member who is the
director of the client.
Intimidation threat A professional accountant accepted a significant gift from a client and
threatened that acceptance of the gift will be made public.
The correct answer is:
Professional accountants quote a low fee to obtain a new engagement, but the fee is so low
that it might be difficult to perform the professional service in accordance with applicable
technical and professional standards of practice. → Self-interest threat,
A professional accountant has prepared the original data used to generate the records that
are the subject matter of the assurance engagement. → Self-review threat,
A professional accountant lobbies in favour of legislation on behalf of a client. → Advocacy
threat,
A professional accountant has a close family member who is the director of the client. →
Familiarity threat,
A professional accountant accepted a significant gift from a client and threatened that
acceptance of the gift will be made public. → Intimidation threat
Question 2
Correct
Mark 2.00 out of 2.00
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Question text
Review the composition of the board of directors of Garden (Pty) Ltd:
Chief executive officer: Mr H Wilken (He incorporated the company eight years ago.)
Financial director: Mrs G Jacobs (She is CA(SA).)
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