Exam (elaborations)
AUE2601 Assignment 5 Semester 1 2024
- Institution
- University Of South Africa (Unisa)
The document contains Assignment question Together with answers Distinction Guaranteed 100% multiple Attempts done Whtsapp
[Show more]
Content preview
Dashboard CalendarDashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 5
Assessment 5
672759
Attempts allowed: 2
This quiz opened at Wednesday, 22 May 2024, 8:00 AM
This quiz will close on Thursday, 23 May 2024, 11:00 PM.
To continue with this quiz attempt you must open your webcam, and it will take some of your pictures randomly during the quiz.
Time limit: 1 hour 40 mins
Grading method: Highest grade
Summary of your previous attempts
Attempt State Grade / 60.00 Review
1 Finished 58.00
Submitted Wednesday, 22 May 2024, 11:57 AM
Highest grade: 5 ..00.
Re-attempt quiz
Jump to...
You are logged in as BUSISIWE VIRGINIA NKOSI (Log out)
AUE2601-24-S1
Data retention summary
Get the mobile app
, Dashboard Calendar
Dashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 5
Time left 1:27:32
Question 1
Not yet answered
Marked out of 2.00
The auditing firm RA Auditors would like to accept a new client engagement within the mining industry. They do not have any other
clients or experience within this industry. When determining whether to accept the client, the auditor must consider, amongst others,
the following criteria in terms of the International Standards of Quality Control 1 (ISQC 1). The following statements are possible
criteria:
1. The firm personnel have knowledge of the mining industry and related subject matter, including regulatory and reporting
requirements.
2. The firm have access to experts in the field, if required.
3. The firm have access to quality control reviewers who meet the criteria and eligibility requirements.
4. The firm is able to complete the engagement within the reporting deadline.
Choose the option that indicates correct criteria the auditor must consider when accepting the above-mentioned new client in the
mining industry in terms of ISQC 1:
Select one:
a. 2, 3 and 4
b. 1, 2, 3 and 4
c. 1, 2 and 4
d. 1, 2 and 3
Clear my choice
, Question 2
Not yet answered
Marked out of 2.00
Dashboard Calendar
The Companies Act of 2008 stipulates certain requirements pertaining to eligibility of individuals to be appointed to an audit
Dashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 5
committee.
Choose the option/options that correctly describes/describe these requirements.
Note that there could be more than one correct option.
Select one or more:
a. A minimum of two members should be appointed to the audit committee.
b. All members of the audit committee should be independent and not involved in the day-to-day management of the company’s
business or have been so involved at any time during the previous financial year.
c. All members of the audit committee need to have appropriate qualifications and experience in finance specifically as the audit
committee is responsible for appointing the auditors.
d. All members of the audit committee should be directors of the company.
Question 3
Not yet answered
Marked out of 2.00
The following are possible procedures that form part of the “perform-the-engagement” stage of the review process in terms of
International Standards on Review Engagements (ISREs) which include the following:
1 determine materiality and obtain an understanding of the entity
2 design and perform inquiries from management and analytical procedures
3 reconcile the financial statements to the underlying accounting records
4 agree the terms of the engagement in the engagement letter
Choose the correct option that indicates the procedures that should be performed in terms of the ISREs.
Select one:
a. 1, 3 and 4
b. 1, 2, 3 and 4
c. 1, 2 and 3
d. 2, 3 and 4
Clear my choice
Jump to...
, Dashboard Calendar
Dashboard / My courses / AUE2601-24-S1 / Welcome Message / Assessment 5
Question 4
Not yet answered
Marked out of 2.00
You are auditing the financial statements of Verico (Pty) Ltd for the financial reporting period ended 30 June 2019. Verico (Pty) Ltd
earned revenue of R60 million for the current financial period.
The audit manager has determined that planning materiality should be based on 1.5% of the revenue amount. Performance materiality
should be set at 75% of planning materiality. Aggregate uncorrected misstatements of R750 000 were discovered during the audit as a
whole.
Which one of the below alternatives correctly describes the correct impact of the misstatements on the audit report?
Select one:
a. Material misstatements found, do not issue an unmodified audit report.
b. No material misstatements found, issue an unmodified audit report.
c. Material misstatements found, issue an unmodified audit report.
d. No material misstatements found, issue a modified audit report.
Clear my choice
Question 5
Not yet answered
Marked out of 2.00
Which one of the following statements regarding a system of internal controls is correct in terms of International Audit Standards?
Select one:
a. Effective internal controls provide an entity with absolute assurance about achieving the entity’s financial reporting objectives.
b. The auditor is required to obtain an understanding of all the internal controls of the audit client.
c. Internal controls are designed, implemented, and maintained by management to promote the reliability of financial reporting,
the effectiveness and efficiency of operations and compliance with applicable laws and regulations.
d. The components of a system of internal control consist of the control environment, the entity’s information system and
communication, the auditor’s risk assessment process, control activities and the process to monitor the system of internal
control.
Clear my choice
Time left 1:22:21
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 ExpertAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R85,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now