Exam (elaborations)
2021 AUE3702 MOCK EXAM 2
- Course
- AUE3702 EXAM PACK
- Institution
- University Of South Africa (Unisa)
Topics covered: Automated controls Test of controls Substantive procedures
[Show more]
Seller
Follow
Content preview
AuditingTOPICS COVERED: Automated controls
Test of controls
Substantive procedures
, AUE Integrated Question test 2 Reading time: 12 minutes
Electronic voting stations (Pty) Ltd (EVS), is a manufacturer of electronic voting
machines. Its factory, warehouse and administration building are located in the same
premises in Cape Town. The company’s year-end is 31 March 2019.
EVS has been profitable since incorporation in 2010. The company sells a generic
product to wholesalers.
In December 2017, EVS was approached by the IEC, Independent Electoral
Commission of South Africa to provide a quote for 5 000 custom electronic voting
machines. These voting machines are to be used in the first pilot study of electronic
voting in South Africa and are therefore required to be ready for the 8 May 2019
elections.
EVS used the services of their electrical engineer, David Becks, to create a prototype
in order to determine the costs to manufacture 1 electronic voting machine.
Raw materials required to build the prototype include the steal casing, screen,
printer and an imported biometric system. A team of 5 staff members were
assembled to build the prototype which took 2 days to complete.
David Becks therefore informed management that an additional 60 staff members
would need to be recruited in order to complete the order in the required amount
of time.
A 10% gross profit margin was then added to the cost in order to determine the
quotation price per electronic voting machine.
The IEC accepted the quote provide by EVS and production on the electronic
voting machines commenced in February 2018. As at 31 March 2019 4 829
custom electronic voting machines had been manufactured and were on hand for
distribution in April 2019.
Disclosure in the notes to the financial statements for inventory reflected the following:
R Million
Raw materials 82
Work in progress 407
Finished goods 1 238
Total inventory 1 727
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller reigntutorstc90. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85443 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now