aaa316_mainexam.pdf - Audit Assurance(3 2016(AAA Main exam 14 December 2016 Time allowed Three hours(plus 15 minutes reading time This open-book exam

aaa316_mainexam.pdf - Audit Assurance(3 2016(AAA Main exam...

This preview shows page 1 - 4 out of 14 pages.

Main exam 14 December 2016 Time allowed – Three hours (plus 15 minutes reading time) This open-book exam contains four (4) short-answer questions to a total of 80 marks This paper contains 14 pages (including this page) (over to page 2) Audit & Assurance (3) 2016 (AAA) Copyright © Chartered Accountants Australia and New Zealand 2016. All rights reserved. This publication is copyright. Apart from any use as permitted under the Copyright Act 1968 (Australia) and Copyright Act 1994 (New Zealand), as applicable, it may not be copied, adapted, amended, published, communicated or otherwise made available to third parties, in whole or in part, in any form or by any means, without the prior written consent of Chartered Accountants Australia and New Zealand.
Image of page 1
Chartered Accountants Program Audit & Assurance Main exam Page 2 of 14 Announcements Where a question refers to or requires candidates to provide a reference to a Standard, candidates can use International Standards, Australian Standards or New Zealand Standards. Candidates must use the assertions contained in ISA  315 (Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment para. A124 (or national equivalent) in the exam. Question 1 begins on the next page, please turn over
Image of page 2
Chartered Accountants Program Audit & Assurance Main exam Page 3 of 14 Question 1 (20 marks)BackgroundAs a high performing audit senior within professional services firm A1 Services (A1), you have recently been assigned as the senior auditor on the upcoming audit engagement of Cryptag Limited (Cryptag), a listed, profit-oriented entity that designs and manufactures access systems for buildings and offices. Cryptag has a 31 December year end. The company has been an audit client of A1 for four years. The engagement partner, Megan, is very keen for you to get up to speed with the client and has emphasised that an in-depth understanding of the entity and its industry helps identify the issues that will impact the audit.It is now 1 December 20X6. At Megan’s request, you have commenced planning for the upcoming engagement, the 31 December 20X6 year-end audit of Cryptag. Based on conversations with Megan and having read the prior year financial statements, you have some understanding of the entity, its environment and its performance. You have been tasked to spend a few days at the client site to undertake some preliminary procedures to help with risk assessment, and to finalise the overall audit strategy. The chief financial officer (CFO) of Cryptag is busy preparing for the financial year end but has kindly provided you with the following information at your request:Minutes of the board meetings for the current financial year (August and October 20X6) (Attachment 1). (Please note that minutes of board meetings for the six months to 30 June 20X6 were reviewed as part of the half-year review.)Extract from the profit and loss account for the nine months ending 30 September 20X6 (Attachment 2).
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 14 pages?

  • One '14
  • Chartered Accountants Program, Main Exam

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture