Essay on Auditing and Assurance

9008 Words Feb 20th, 2014 37 Pages
AC 31611DE AC 316 (M) 2013
Page 1 of 4 UNIVERSITY OF SWAZILAND FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING MAIN EXAMINATION PAPER MAY 2013

DEGREE! DIPLOMA:

BACHELOR COMMERCE

OF

COMMERCE

NIP!

DIPLOMA

IN

YEAR OF STUDY

B. COM III (Fff)! DIPLOMA IN COMMERCE IV (IDE)

TITLE OF PAPER

PRINCIPLES OF AUDITING

COURSE CODE

AC316! IDE AC316 (M) MAY 2013

TOTAL MARKS

100 MARKS

TIME ALLOWED

THREE (3) HOURS

INSTRUCTIONS

1

There are four (4) questions, answer all. Begin the solution to each question on a new page. The marks awarded for a question are indicated at the end of each question.

2 3

Note: You are reminded that in assessing your work, account will be taken of accuracy of the language and general quality of
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The company is registered as a private company and the share register reflects that there company had three shareholders on the day of incorporation. There were no changes during the year. The company commenced operations on 01 October 2012 and for reporting purposes the first year end was deemed to have commenced on 01 March 2012 and ended on 28 February 2013. Alexus, the Managing director has told Croppers that the Financial Statements and the Schedules supporting the balances will be provided to the external auditors but under no circumstances should they seek to gain access to the records of the company. She further mentioned that no member of the audit team is expected to attend the Annual General Meeting. It was also agreed that although Miss Thamsanqa Dlamini, the engagement partner/leader owned 33.33 % shares in the company, she would be prohibited from attending the annual general meeting of the company due to her position as auditor of the company. This is to enable members of the company to objectively evaluate the work done by the audit firm before deciding on whether they should appoint them as auditors of the company for the next financial year. Miss Dlamini (The engagement leader) was instrumental in the firm getting the audit. It was felt that her presence in the team will help manage relations well between the client and the audit team. The company did inform the audit team beforehand, that Chelsea does not maintain a detailed record of the assets

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