Exam (elaborations)
AUE2601 Assignment 3 Due 7 May 2024
- Course
- Institution
AUE2601 Assignment 3 Due 7 May 2024
[Show more]
Seller
Follow
Wellfocus
Reviews received
Content preview
AUE2601ASSIGNMENT 3
DUE DATE: 7 MAY 2024
,1. UNISA
2. 2024
3. AUE2601-24-S1
4. Welcome Message
5. Assessment 3
Assessment 3
Open course index
Open block drawer
Back
Your final grade for this quiz is 30.00/30.00
Attempts allowed: 2
This quiz opened at Monday, 6 May 2024, 8:00 AM
This quiz will close on Tuesday, 7 May 2024, 11:00 PM.
Question 1
Incorrect
Mark 0.00 out of 2.00
Which of the following statements is incorrect regarding misstatements?
a. If the directors refuse to adjust the financial statements for a material factual misstatement identified by the auditor, the auditor
will have to issue a modified audit report
b. A misstatement is a difference between what has been reported by the directors in the financial statements, and what
should have been reported in terms of the reporting framework
c. Misstatements that are clearly trivial may be ignored by the auditor
d. The three types of misstatements an auditor can identify are factual misstatements, judgmental misstatements and trivial
misstatements
, Dashboard Calendar
Dashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 3
Not yet answered
Marked out of 2.00
Even though management may put controls in place at a business, these controls and policies sometimes do not provide absolute
assurance that the risks that threaten the objectives of the business will be adequately responded to due to the following reasons:
1. Management’s usual requirement is that the cost of internal control exceeds the expected benefit to be derived (cost/benefit).
2. Judgement errors on the nature and extent of the controls implemented and the risk assumed.
3. The tendency for internal controls to be directed at non-routine transactions rather than routine transactions.
4. The potential for human error due to carelessness, distraction, mistakes of judgement and the misunderstanding of instructions.
5. The possibility of circumvention of internal controls through the collusion of a member of management, or an employee, with
parties outside or inside the company.
Which option correctly indicates the limitations of internal controls?
a.
1, 2, 3, 4 and 5
b. 1 and 5
c.
1, 3 and 4
d. 1, 3 and 4
Clear my choice
, Question 3
Not yet answered
Marked out of 2.00
Dashboard Calendar
Which option describes a test of control performed by the auditor?
Dashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 3
a. The auditor agrees the amount of revenue per the sales invoice to the entry in the accounting records
b. The auditor counts the number of a stock item in the warehouse and traces the number to the stock listing
c. The auditor sends an external confirmation request to a debtor to confirm the amount owed to the entity
d. The auditor inspects how the accounting manager reviews the bank reconciliation, agrees the amounts to the external bank
statements and verifies the supporting documentation for the reconciling items included in the reconciliation before signing
the reconciliation as proof of the review
Clear my choice
Jump to...
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Wellfocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.82. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79202 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now