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Mancosa Introduction to Auditing past papers

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This document has past osa papers including the November 2024 paper and no answers are provided .

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  • November 26, 2024
  • 46
  • 2024/2025
  • Exam (elaborations)
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MAIN ONLINE SUMMATIVE ASSESSMENT



PROGRAMME Bachelor of Commerce in Accounting



MODULE Introduction to Auditing

YEAR Two (2)

INTAKE January 2021

DATE 20 November 2021

TOTAL MARKS 100




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https://www.coursehero.com/file/162397501/BCom-Accounting-Introduction-to-Auditing-Main-question-paperpdf/

, Answer ALL questions in this paper.


SECTION A (40 Marks)


QUESTION 1 (20 Marks)


Registered auditors have skills and knowledge to perform their functions and they should be completely honest in
performing their functions. The following actions taken by registered auditors are examples of non-compliance with
one or more of the fundamental principles.


Required: Identify with explanations which of the fundamental principles belonging to the SAICA Code of
Professional Conduct have not been complied with in each of the situations described below:


a) Randy Rice the registered auditor in charge of the Perry Sauce (Pty) Ltd audit, made racist comments
concerning the clients staff during an audit planning session. (3 Marks)


b) Jerry Jan the registered auditor in charge of the audit of Dribble Drabble (Pty) Ltd, charged the client a fee for
audit procedures which he knew had not actually been carried out. (3 Marks)


c) Tolly Ted a registered auditor, arranged with some of his clients to pay the fees which he charged for his
services in cash. Any client agreeing to do so was not charged VAT and was given a substantial discount.

(5 marks)


d) The financial director of Dentists Ltd has made an offer to the audit team to take them on a weekend trip to
a safari with all expenses paid for, which will become an event that occurs on a yearly basis should all audit
deadlines be met annually. (6 marks)


e) A fellow partner of yours, at the audit company you work for, is due to shortly marry the financial director of
one of the company audit clients. She is also part of the audit team which conducts the audits for this client.
(3 marks)




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, QUESTION 2 (5 Marks)


Threats may threaten a chartered accountant’s compliance with the fundamental principles that are in the code.
Identify the 5 different types of threats which exist.




QUESTION 3 (15 Marks)
For each situation below identify the threat and one fundamental principle that is comprised.


a) An auditor has shares in a company which is an audit client of theirs.


b) An accountant has compiled the financial statements for a client and was requested to also audit the statements.


c) The financial director of Baboo Ltd is very aggressive and dismissive of the audit function and audit team


d) A chartered accountant values a client’s shares and then leads the negotiations on the sale of the client’s company


e) The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he is
sympathetic to the interest of his friend.




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, SECTION B (60 Marks)


QUESTION 1 (30 Marks)


“The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to
obtain sufficient appropriate evidence to be able to draw reasonable conclusions on which to base an audit
opinion. It is obvious that in order for an auditor to gather the evidence that they require, a number of procedures
will need to be carried out. The nature, timing and extent of the evidence that is collected by an auditor also plays
an important factor in the deciding on the type and manner of evidence that needs to be collected”.


Required: Based on the information above, answer the following questions:


a) Will accounting records which are accurate, complete and maintained in a proper manner be considered as
evidence which is sufficient for the auditor to fulfil the duties and functions assigned to him? (3 Marks)


b) Provide a brief description of the relationship which exists between audit evidence and audit risk. (4 Marks)


c) What are the factors upon which reliable and relevant evidence depends on? (4 Marks)


d) You are an audit student who has been invited to attend an interview for a graduate training program in auditing.
At the interview you are asked question relevant to audit procedures. You are required to briefly describe the seven
types of audit procedures which can be used to obtain audit evidence. (14 Marks)


e) When collecting audit evidence the nature, timing and extent of the evidence play a critical role. What do
these terms refer to in relation to evidence that is collected? (3 Marks)


f) What does the term risk assessment procedures refer to in the context of auditing? (2 Marks)




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