These are Exam questions and solutions as well as those that were found in assignments, study guides and practice questions. When you work through these together with explanations in your study guide, you will gain an excellent understanding of concepts, theories and audit requirements which will a...
Department of Auditing
AUE2601
Feedback on Examination, Semester 1, 2018
Please read the following carefully as it contains feedback on the first semester
examination.
Question 1.1
The question asked students to describe the overall objectives of an auditor in an audit
engagement performed in terms of the International Standards in Auditing (ISA’s). This
was a pure theory question for 4 marks.
Common problems identified:
Some students did not write all the overall objectives of the auditor and therefore
did not score full marks.
Please study the following:
ISA 200 par 7, Jackson and Stent (2016:1/19, Study unit1.5)
Question 1.2
The question asked students to define professional skepticism as it applies to an audit
engagement in terms of the ISA’s. This was a pure theory question for 2 marks.
Common problems identified:
Some students did not understand the meaning of skepticism.
Please study the following:
ISA 200 par 7, Jackson and Stent (2016:1/19, Study unit1.5)
Question 2.1
The question asked students to indicate which aspects were taken into account to arrive
at the PIS score of 249 for APCA.
Common problems identified:
Many students indicated that only directors are the individuals who directly or
indirectly have a beneficial interest in the company’s securities.
Please study the following:
Jackson & Stent (2016:1/13–1/14, 3/51)
Question 2.2
,The question asked students to state the type of assurance engagement that the audit
firm would have to conduct for APCA and to give reasons to substantiate their answer.
Common problems identified:
None
Please study the following:
Jackson & Stent (2016:1/13 – 1/14, Study unit 1.2)
Question 3.1
The question asked students to name the five (5) fundamental principles of professional
ethics. This was a pure theory question for 5 marks.
Common problems identified:
None
Please study the following:
Jackson & Stent (2016:2/5, Study unit 2.3)
Question 3.2
The question asked students to identify four (4) aspects mentioned by the CEO of TC that
can lead to contraventions of the code of professional conduct if the appointment is
accepted.
Common problems identified:
Students did not understand the contraventions of the CPC.
Many students provided safeguards instead of reasons for the contravention.
Please study the following:
CPC 240 – 260; Jackson & Stent (2016:2/21–2/23, Study unit 2.3)
Question 3.3
The question asked students to give a reason for each aspect identified can lead to a
contravention of the code of professional conduct.
Common problems identified:
Students did not understand the contraventions of the CPC.
Many students provided safeguards instead of reasons for the contravention.
Please study the following:
CPC 240 – 260; Jackson & Stent (2016:2/21–2/23, Study unit 2.3)
Question 4.1
, The question asked students to state whether the partners referred to in matters 1 – 4
can be appointed as the audit engagement partner for CY.
Common problems identified:
Many students were unsure on Ms Yellow.
Many students did not take note of the 10% holding by Mr Moneybags.
Please study the following:
Companies Act Chapter 3 Part C (section 90), Jackson and Stent (2016:2/33 and
3/51), Study unit 2.2
Question 4.2
The question asked students to provide a reason for their answer to question 4.1.
Common problems identified:
Many students were unsure on Ms Yellow.
Many students did not take note of the 10% holding by Mr Moneybags.
Many students indicated that the boyfriend is related.
Please study the following:
Companies Act Chapter 3 Part C (section 90), Jackson and Stent (2016:2/33 and
3/51), Study unit 2.2
Question 5.1
The question asked students to list six (6) main sources of information about a client that
can be used during the risk assessment process to obtain information about the client.
Common problems identified:
Many students stating internal factors and external factors, but not specific
examples of what this can be.
Many students gave examples of substantive procedures instead of main sources.
Many students listed source documents instead of main sources.
Please study the following:
SAICA ISA 315 par 3 – 10 and A1 – A23, Jackson and Stent (2016:7/8) and study
unit 3.4 and 4.3
Question 5.2
The question asked students to identify six (6) risk indicators that would increase the risk
of material misstatement at the overall financial statement level.
Common problems identified:
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