AUE202m_NovExam2009_Eng[1]

AUE202m_NovExam2009_Eng[1] - This paper consists of NINE...

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This paper consists of NINE (9) pages. This paper consists of the following questions and main topics: QUESTION MAIN SUBJECT MARKS 1 Multiple-choice questions 15 2 The audit of credit sales 25 3 The audit of fixed assets and long-term loans 20 4 The internal controls on inventory and sales 20 5 The audit of wages 20 ___ 100 === NOTE: The main objective of the examination is to test a candidate’s knowledge and ability to apply the study material, although the examiners will also take into account the candidate’s ability to organise and present that knowledge in writing and according to an acceptable standard. [TURN OVER]
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- 2 - AUE202M OCT/NOV 2009 QUESTION 1 15 marks REQUIRED For every subsection of this question, you have to choose one alternative that you think is the appropriate answer. Answer the subsections of this question in numerical order, for example, as follows: 1.1 A 1.2 B 1½ marks per question 1.1 Which one of the following general internal control measures is not an appropriate internal control measure with regard to the signing of and control over cheques? A Cancelled cheques should be sent back to the bank. B Cheques should be presented for signature together with supporting documents. C Cheques above a certain amount should require two signatures. D The use of a separate bank account, for example salaries. 1.2 Select the alternative which best completes the following sentence: An audit programme may contain all four of the alternatives below, but it should always include . .. A audit procedures. B sample sizes. C particular items to be selected. D timing of the tests. [TURN OVER]
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AUE202M OCT/NOV 2009 1.3 Select the correct alternative in addressing the completeness assertion when auditing sales: A Sales adjustments during the period under review have been correctly calculated and goods returned and discounts granted have been correctly included in the calculation. B All sales made during the period under review have been recorded and all sales adjustments were taken into account. C The sales journal was casted and cross-casted by three individuals and no errors were noted. D Source documents relating to the sale have been inspected and there were no discrepancies noted by the auditor. 1.4 The best internal control that an entity can implement to ensure that the bank and cash account is properly accounted for, is: A Perform monthly bank reconciliations and follow up on all reconciling items on time. B Agree the bank balance per the trial balance to the bank statement at the end of the year and refer differences to the external auditor. C The petty cash on hand to be counted daily and differences to be followed up with all staff. Lie detector tests may be introduced during interrogations of staff to find out who stole the petty cash. D
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This note was uploaded on 03/22/2011 for the course AUE 202M taught by Professor Unknown during the Spring '10 term at University of South Africa.

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AUE202m_NovExam2009_Eng[1] - This paper consists of NINE...

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