2012 semester 2 pass paper

Topics: Auditing, Audit, Internal control Pages: 23 (2903 words) Published: March 9, 2014
Name: ...................................................
Student Number: .................................
Signature: ............................................

THE UNIVERSITY OF
NEW SOUTH WALES

School of Accounting
ACCT3708 – Auditing and Assurance Services
ACCT3718 – Auditing and Assurance Services
(Honours)

FINAL EXAMINATION
Session 2 - 2012
1.
2.

3.

Time allowed:
2 hours
Number of questions: The exam is divided into two parts.
PART A consists of 16 multiple choice questions
worth 1 mark each, in total 16 marks.
PART B is worth 40 marks and consists of three
written answer questions. (Note that the
questions are NOT of equal value)
Total exam:
56 Marks (represents 56% of final assessment)

All questions are compulsory.
Multiple choice questions are to be answered on the answer sheet. Written questions are to be answered in the spaces provided on this exam paper. THIS PAPER MAY NOT BE RETAINED BY THE CANDIDATE.
ANSWERS MUST BE WRITTEN IN INK.
EXCEPT WHERE THEY ARE EXPRESSLY REQUIRED, PENCILS MAY BE
USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORK.
1

PART A
MULTIPLE CHOICE QUESTIONS

(total of 16 marks)

This question contains sixteen (16) multiple choice questions each worth one (1) mark.
• A separate answer sheet is provided.
• Carefully read the instructions as provided.
• Indicate the most correct response in the spaces provided. • Please ensure you fill in your Student Number and Student Name correctly on your answer sheet.
• No marks are deducted for an incorrect response.

1.

Your client has not accounted for the cost of acquisition of a material item of property plant & equipment it purchased during the financial year in accordance with AASB 116. A footnote has been included in the financial statements referring to this departure from the standard. Accordingly, as auditor, your opinion will be:

(a)
(b)

Unqualified with Emphasis of Matter.

(c)

Qualified.

(d)

2.

Unqualified.

Adverse.

Due to health and safety regulations, as auditor, you have been unable to access certain locations within your client’s warehouse. Therefore you have been unable to sight all items selected in your sample for testing the existence of inventory. However you have been able to obtain sufficient appropriate audit evidence from alternative sources. Accordingly, your audit opinion will be:

(a)

Unqualified.

(b)

Unqualified with Emphasis of Matter.

(c)

Qualified.

(d)

Disclaimer.

2

3.

The Corporations Law requires companies to maintain proper books and records. As auditor, you have determined that your client has failed to comply with this statutory requirement and you are unable to ascertain whether its financial statements present a true and fair view. The likely audit opinion you will issue is:

(a)
(b)

Unqualified with Emphasis of Matter.

(c)

Qualified.

(d)

4.

Adverse.

Disclaimer.

Immediately after year end, and prior to the signing of your audit opinion, a major supplier of your client goes into liquidation. You determine that that this will lead to a severe shortage of supplies critical to your client’s operations, and this situation is likely to last for some months. Profitability and cashflow at your client has been, marginal, at best, for some months. The client has acknowledged the going concern issue in the notes and the director’s declaration but it is still preparing its financial statements using the going concern basis. The audit opinion you will issue is:

(a)
(b)

Unqualified with Other Matter.

(c)

Unqualified.

(d)

5.

Unqualified with Emphasis of Matter.

Adverse.

Your client has listed a major item of plant and equipment as available for sale, and expects it to be sold within 3 months of balance date. The item is listed within Non-Current Property, Plant and Equipment on the balance sheet. Accordingly, your audit opinion will be:

(a)

Unqualified.

(b)...
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