Exam (elaborations)
AUE2601 Assignment 5 Semester 2 2024 All Questions covered 100%
- Course
- Auditing Theory and Practice
- Institution
- University Of South Africa (Unisa)
AUE2601 Assignment 5 Semester 2 2024 All Questions covered 100%
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Assessment 5: Attempt review https://cas.myexams.unisa.ac.za/mod/quiz/review.php?attempt=2475 Dashboard Calendar
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 5
Started on Wednesday, 6 November 2024, 11:08 AM
State Finished
Completed on Wednesday, 6 November 2024, 11:34 AM
Time taken 29 mins 52 secs
Grade 0.00 out of 60.00 (100 %)
Question 1
Complete
Mark 2.00 out of 2.00
Indicate whether the following statement is true or false.
One of the duties of the board of directors of a company is to nominate, when a vacancy as auditor of the company arises, a registered
auditor who, in the opinion of the board of directors, is independent of the company.
Select one:
True
False
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Question 2
Complete
Mark 2.00 out of 2.00
Dashboard Calendar
When a company is required to have its financial statements audited, the appointment of the auditor must take place at the annual
Dashboard / My courses
general meeting. / AUE2601-24-S2
The following / Welcome
statements are Message
correct with respect/ toAssessment 5
the audit committee’s considerations when assessing the
independence of the auditor:
1 The audit committee must consider whether the auditor’s independence may have been prejudiced as a result of any previous
appointment as auditor or the extent of any consultancy, advisory or other work undertaken by the auditor of the company.
2 The audit committee must ascertain that the auditor does not receive any direct or indirect remuneration except as an auditor for
rendering other non- audit services which have been determined by the audit committee.
3 If the company is a member of a group, the audit committee does not need to evaluate the independence of the auditor in the
context of the company itself as this will be performed at group level.
4 The audit committee must consider whether the auditor complies with the rules and regulations of IRBA in relation to the
independence and conflict of interest.
Which combination of the above-mentioned alternatives represents the correct answer in terms of section 94(8) of the Companies Act?
Select one:
a. 1, 2 and 3
b. 1, 3 and 4
c. 1, 2 and 4
d. 2, 3 and 4
Question 3
Complete
Mark 2.00 out of 2.00
In conducting the audit in terms of the International Standards on Auditing (ISAs), the auditor must obtain sufficient, appropriate audit
evidence on which to base the audit opinion.
Which one of the following is NOT an influencing factor in determining whether sufficient, appropriate audit evidence has been
obtained?
Select one:
a. Whether the auditor has sufficient prior experience of the client or not.
b. Whether audit evidence is obtained from physical or electronic records.
c. Whether audit evidence is obtained from independent external sources or internal sources.
d. Whether audit evidence gathered on one section of the audit is corroborated by evidence gathered from another section of the
audit.
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Question 4
Complete
Mark 2.00 out of 2.00
Dashboard Calendar
Each of the following findings relate to a separate independent review engagement performed by a practitioner:
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 5
1. Aggregate misstatements of R700 000 relating to intangible assets were discovered during the year. These were higher than the
materiality of R500 000. Management is unwilling to make any adjustments.
2. Accounting data affecting most financial statement accounts was lost as the company migrated to a new accounting system. As a
result, the financial statements are incomplete and the practitioner could not perform review procedures on many accounts.
3. After performing analytical procedures over revenue, actual revenue recorded was considered materially overstated. Further
substantive tests of detail revealed misstatements which were not considered material. Management is unwilling to make any
adjustments.
Which one of the following options correctly represents the conclusions that must be issued by the practitioner in terms of
International Standards on Review Engagements under each of the above-mentioned circumstances?
Select one:
a. 1 2 3
Disclaimer Adverse Qualified
b. 1 2 3
Unmodified Qualified Disclaimer
c. 1 2 3
Adverse Disclaimer Unmodified
d. 1 2 3
Qualified Disclaimer Unmodified
Question 5
Complete
Mark 2.00 out of 2.00
Indicate whether the following statement is true or false.
Auditing postulates are the foundations on which the subject auditing is built and one of the eight audit postulates is that the financial
statements and other information submitted for verification are free from collusive and other unusual irregularities.
Select one:
True
False
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Question 6
Complete
Mark 2.00 out of 2.00
Dashboard Calendar
John, a registered auditor has been convicted of fraud last month and he is awaiting sentencing. This is John’s first conviction of any
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 5
criminal act.
Choose the correct option relating to John’s future as a registered auditor in terms of the Auditing Profession Act.
Select one:
a. The Regulatory Board should give notice in writing to John of the intention to cancel his registration with reasons and afford
John a minimum of 21 days to provide grounds for not cancelling his registration.
b. John will remain registered as a registered auditor as this is his first conviction of fraud.
c. Any liabilities incurred by John before the cancelation and removal of John’s name from the register of auditors will be written
off.
d. John’s registration will be terminated by the Regulatory Board on the basis of his conviction of fraud without any delay or notice
to John.
Question 7
Complete
Mark 2.00 out of 2.00
Your colleague asks you to explain to him what a reasonable assurance engagement is in terms of the International Standards on
Auditing. Which option below represents the correct explanation of a reasonable assurance engagement?
Select one:
a. A reduction in assurance engagement risk to a level that is acceptable in the circumstances of the engagement but where that
risk is greater than for a reasonable assurance engagement; a positive form of expression of the practitioner’s conclusion.
b. A reduction in assurance engagement risk to an acceptably low level; a positive form of expression of the practitioner’s
conclusion; procedures for gathering sufficient, appropriate evidence are deliberately limited.
c. A reduction in assurance engagement risk to an acceptably low level; a positive form of expression of the practitioner’s
conclusion; sufficient, appropriate evidence is gathered as part of a systematic engagement process; the auditor gives reasonable
assurance regarding the fair presentation of the financial statements.
d. A reduction in assurance engagement risk to an acceptably low level; a positive form of expression of the practitioner’s
conclusion; sufficient, appropriate evidence is gathered as part of a systematic engagement process; a moderate level of
assurance is given.
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