Exam (elaborations)
AUE2602 EXAM PACK 2023
- Institution
- University Of South Africa (Unisa)
AUE2602 EXAM PACK 2023
[Show more]
Content preview
AUE2602 EXAMPACK 2023
QUESTIONS &
ANSWERS
,AUE2602 EXAM
PACK 2023
LATEST QUESTIONS
AND ANSWERS
For queries or any assignment help
Email: musyokah11@gmail.com
, Stuvia.com - The study-notes marketplace
THIS PAPER CONSISTS OF SEVEN (7) PAGES.
This paper consists of the following questions and main topics:
QUESTION MAIN TOPIC MARKS
1 Corporate governance, internal controls and the acquisitions and 50
payments cycle
2 Internal controls, revenue and receipts cycle, acquisition and 50
payments cycle, inventory and production cycle, payroll and
personnel cycle and finance and investment cycle
100
NOTE:
Although the primary purpose of the examination is to test your knowledge and application of the
subject matter, your ability to organise and present such knowledge in written language of an
acceptable standard will be taken into consideration by the examiners.
Downloaded by: prelisha | prelisha01@gmail.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
-2- AUE2602
October/November 2018
QUESTION 1 50 MARKS
Modern Closets Limited is a large manufacturing company situated in Johannesburg, South Africa. They
specialise in the design and construction of closets and cabinets for private or commercial use. The
company was started in 1987 by Mr Jay and is currently considering whether it should list on the
Johannesburg Stock Exchange (JSE).
The board of directors
Mr Jay Chairperson of the board. Mr Jay was the Chief Executive Officer of Modern Closets for 20
years, but retired last year.
Ms Claire Chief Executive Officer (CEO) and CA(SA). Ms Claire is the daughter of Mr Jay.
Mr Mitch Chief Operating Officer (COO) and qualified lawyer. Mr Mitch is the son of Mr Jay.
Mrs Gloria Non-executive director and married to Mr Jay.
Mr Cam Non-executive director who currently has 1% shareholding in Modern Closets.
Mr Phil Non-executive director with no relationship with the other directors or officers of Modern
Closets.
Ms Lilly Non-executive director and partner in the legal firm that assists Modern Closets in their
business.
Mr Jay was never too concerned about the corporate governance of the company as he had a very hands-
on approach to running the business. However, Ms Claire wants to ensure that Modern Closets is following
the recommendations of the King IV Report with regard to ethical leadership.
Ms Claire also knows that her father has never appointed board committees and is concerned that they can
no longer just explain why. She wants to appoint the required board committees as soon as possible.
Internal controls
Mr Jay is not a fan of the computerised systems that have been implemented at Modern Closets over the
past few years. As such, he has never used some of the built-in functionalities. Now that Ms Claire is the
CEO, she knows that the software has different functions and can generate different reports, which can be
used to her advantage. However, she is unsure what they relate to and what would be useful to her.
She knows that the internal audit team always wants to link the controls to the control objectives being
occurrence and authorisation, accuracy and completeness.
She is specifically interested in the following control and report functionalities of the software:
a. Audit trails
b. Mandatory fields
c. Override reports
d. Validation checks
e. Activity reports
f. Sequence checks
g. Valid character and sign checks
Acquisitions and payments
Owing to the way Mr Jay ran the business, Modern Closets has always made payments by way of physical
cheques. Mr Mitch is in the process of implementing a computerised system that would make EFT payments
[TURN OVER]
Downloaded by: prelisha | prelisha01@gmail.com
Distribution of this document is illegal
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 pablitoh11. 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)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now