UNIVERSITY EXAMINATIONS
JANUARY/FEBRUARY 2025
AUI4862
Advanced Internal Auditor’s Responsibility in Governance, Risk
Management and Control
100 marks
Duration: 3 hours
This paper consists of 10 pages.
Note: The Invigilator app will request
you to take a photograph of every page
of your answer sheet at the end of the
assessment. However, this does not
replace the formal scanning and
uploading to myExams.
YOUR EXAM QR CODE & QR ACCESS CODE
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
• Ensure you are connected to the internet to log in to the Invigilator app and scan
this QR code.
• If you encounter difficulty in scanning the QR code, you can enter the exam access
code below the QR code to start the invigilation.
• If you finish your assessment before the app timer has run out, you need to press
the ‘Finish Assessment’ button and follow the instructions before you exit or
minimise the app.
• Scan the QR code at the start time of the assessment, unless otherwise specified
by your institution. Note that you can scan this QR code only once.
• The QR code is scannable for a limited time only, so it should be scanned as soon
as possible after the assessment commencement time.
• Keep the Invigilator app open on your smartphone for the full duration of the
assessment. You are not allowed to minimise or leave the app during your
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, CONFIDENTIAL
Page 2 of 10 AUI4862
JANUARY/FEBRUARY 2025
assessment.
• You must adhere to the assessment time limit communicated to you by your
institution. The timer displayed in the Invigilator app may vary, depending on the
starting time of invigilation.
FURTHER GUIDANCE:
• If you have only one device, you may access your assessment in the app by
pressing the ‘Access Browser’ button in the top right corner of your app.
• Once the QR code has been scanned, ensure your media volume is turned up and
place your smartphone next to you.
• The Invigilator app will notify you with a notification beep when you are required to
action a photograph request, which you should then perform as soon as possible.
• We recommend that you keep your smartphone on charge for the duration of the
assessment.
• Ensure you are connected to the internet when commencing the invigilation. You
also need to be connected to the internet at the end of the assessment to upload
the app data.
• If your assessment has multiple online sections, tests or attempts, you should NOT
finish the invigilation until your entire assessment has been completed.
• Should you encounter any technical difficulty, please WhatsApp the Invigilator
Helpdesk on +27 (0)73 505 8273.
EXAMINATION INSTRUCTIONS:
• The examination paper will be available for downloading 15 minutes before the
commencement of the examination.
• You have 30 minutes after the official time of 3 hours to upload your submission.
• This is a closed-book examination.
• Save a copy of the examination paper before your start answering the
questions.
• Keep the honesty declaration in mind while answering this paper.
• You may answer in a handwritten or typed format, and then convert and
upload the document in one PDF file.
• Write legibly and clearly and DO NOT password-protect your PDF file.
• Virus-infected files will not be marked.
• NO e-mailed submissions will be allowed.
• Commence the submission (uploading) of your answer file as soon as you
have completed the assessment. Do not wait for the session to conclude.
• Verify the file details before final submission.
• We wish you success!
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, CONFIDENTIAL
Page 3 of 10 AUI4862
JANUARY/FEBRUARY 2025
CONFIDENTIAL
QUESTION MAIN TOPIC MARKS
1 Enterprise risk management 36
2 Governance: King IV Report 15
3 Governance: organisational ethics 20
4 Legislation 29
100
Note:
Although the primary purpose of the examination is to test your knowledge,
understanding and application of the subject matter, the examiners will also consider
your ability to organise and present your knowledge in written language of an
acceptable standard.
[SCROLL DOWN]
, CONFIDENTIAL
Page 4 of 10 AUI4862
JANUARY/FEBRUARY 2025
QUESTION 1 36 marks
Fly High Limited (Fly High) is a global airline established in South Africa in 2020 after
the COVID-19 pandemic. The company’s vision is “To be South Africa’s preferred
airline”. The mission of the company is to bring people, places and diverse cultures
closer together. Fly High has flights to ten different countries in the world.
Part A
Fly High operates in a highly regulated and commercially competitive environment. In
addition, the business’s operational complexity exposes the company to various risks.
This justifies the need for an enterprise-wide approach to risk management, which is
not a common approach among Fly High’s competitors. Some of the other approaches
to risk management are described below:
Competitor A – Risk management is conducted within each department of the
airline company.
Competitor B – Risk management and internal controls are fully embedded in all
operations of the airline company.
Through the risk management process, the following business risks were identified at
Fly High:
a) Capital risk management
Capital is managed to ensure that the organisation continues as a going concern. The
capital structure of the organisation consists of share capital. Management and the
board use short-term investment instruments to ensure continued funding of
operations. However, over the past two years it has not been necessary to use short-
term investment instruments to assist funding as income has been sufficient.
b) Financial risk management
The fundamental objective of financial risk management is to protect and improve on
future budgeted and forecasted cash flows, the financial performance and position of
the organisation. The acid test ratio has improved from 1.5 in 2023 to 0.8 in 2024.
c) Interest rate risk
There is a risk of increased financing cost due to adverse movements in market
interest rates. The interest rate cost will materialise when short-term investment
instruments are employed.
d) Credit risk management
There is a risk of losses arising from debtors defaulting on payments. The average
outstanding term of debtors has decreased in recent months.
e) Currency risk
Foreign exchange risk is the risk of loss because of adverse movements in currency
exchange rates.
[SCROLL DOWN]
JANUARY/FEBRUARY 2025
AUI4862
Advanced Internal Auditor’s Responsibility in Governance, Risk
Management and Control
100 marks
Duration: 3 hours
This paper consists of 10 pages.
Note: The Invigilator app will request
you to take a photograph of every page
of your answer sheet at the end of the
assessment. However, this does not
replace the formal scanning and
uploading to myExams.
YOUR EXAM QR CODE & QR ACCESS CODE
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
• Ensure you are connected to the internet to log in to the Invigilator app and scan
this QR code.
• If you encounter difficulty in scanning the QR code, you can enter the exam access
code below the QR code to start the invigilation.
• If you finish your assessment before the app timer has run out, you need to press
the ‘Finish Assessment’ button and follow the instructions before you exit or
minimise the app.
• Scan the QR code at the start time of the assessment, unless otherwise specified
by your institution. Note that you can scan this QR code only once.
• The QR code is scannable for a limited time only, so it should be scanned as soon
as possible after the assessment commencement time.
• Keep the Invigilator app open on your smartphone for the full duration of the
assessment. You are not allowed to minimise or leave the app during your
[SCROLL DOWN]
, CONFIDENTIAL
Page 2 of 10 AUI4862
JANUARY/FEBRUARY 2025
assessment.
• You must adhere to the assessment time limit communicated to you by your
institution. The timer displayed in the Invigilator app may vary, depending on the
starting time of invigilation.
FURTHER GUIDANCE:
• If you have only one device, you may access your assessment in the app by
pressing the ‘Access Browser’ button in the top right corner of your app.
• Once the QR code has been scanned, ensure your media volume is turned up and
place your smartphone next to you.
• The Invigilator app will notify you with a notification beep when you are required to
action a photograph request, which you should then perform as soon as possible.
• We recommend that you keep your smartphone on charge for the duration of the
assessment.
• Ensure you are connected to the internet when commencing the invigilation. You
also need to be connected to the internet at the end of the assessment to upload
the app data.
• If your assessment has multiple online sections, tests or attempts, you should NOT
finish the invigilation until your entire assessment has been completed.
• Should you encounter any technical difficulty, please WhatsApp the Invigilator
Helpdesk on +27 (0)73 505 8273.
EXAMINATION INSTRUCTIONS:
• The examination paper will be available for downloading 15 minutes before the
commencement of the examination.
• You have 30 minutes after the official time of 3 hours to upload your submission.
• This is a closed-book examination.
• Save a copy of the examination paper before your start answering the
questions.
• Keep the honesty declaration in mind while answering this paper.
• You may answer in a handwritten or typed format, and then convert and
upload the document in one PDF file.
• Write legibly and clearly and DO NOT password-protect your PDF file.
• Virus-infected files will not be marked.
• NO e-mailed submissions will be allowed.
• Commence the submission (uploading) of your answer file as soon as you
have completed the assessment. Do not wait for the session to conclude.
• Verify the file details before final submission.
• We wish you success!
[SCROLL DOWN]
, CONFIDENTIAL
Page 3 of 10 AUI4862
JANUARY/FEBRUARY 2025
CONFIDENTIAL
QUESTION MAIN TOPIC MARKS
1 Enterprise risk management 36
2 Governance: King IV Report 15
3 Governance: organisational ethics 20
4 Legislation 29
100
Note:
Although the primary purpose of the examination is to test your knowledge,
understanding and application of the subject matter, the examiners will also consider
your ability to organise and present your knowledge in written language of an
acceptable standard.
[SCROLL DOWN]
, CONFIDENTIAL
Page 4 of 10 AUI4862
JANUARY/FEBRUARY 2025
QUESTION 1 36 marks
Fly High Limited (Fly High) is a global airline established in South Africa in 2020 after
the COVID-19 pandemic. The company’s vision is “To be South Africa’s preferred
airline”. The mission of the company is to bring people, places and diverse cultures
closer together. Fly High has flights to ten different countries in the world.
Part A
Fly High operates in a highly regulated and commercially competitive environment. In
addition, the business’s operational complexity exposes the company to various risks.
This justifies the need for an enterprise-wide approach to risk management, which is
not a common approach among Fly High’s competitors. Some of the other approaches
to risk management are described below:
Competitor A – Risk management is conducted within each department of the
airline company.
Competitor B – Risk management and internal controls are fully embedded in all
operations of the airline company.
Through the risk management process, the following business risks were identified at
Fly High:
a) Capital risk management
Capital is managed to ensure that the organisation continues as a going concern. The
capital structure of the organisation consists of share capital. Management and the
board use short-term investment instruments to ensure continued funding of
operations. However, over the past two years it has not been necessary to use short-
term investment instruments to assist funding as income has been sufficient.
b) Financial risk management
The fundamental objective of financial risk management is to protect and improve on
future budgeted and forecasted cash flows, the financial performance and position of
the organisation. The acid test ratio has improved from 1.5 in 2023 to 0.8 in 2024.
c) Interest rate risk
There is a risk of increased financing cost due to adverse movements in market
interest rates. The interest rate cost will materialise when short-term investment
instruments are employed.
d) Credit risk management
There is a risk of losses arising from debtors defaulting on payments. The average
outstanding term of debtors has decreased in recent months.
e) Currency risk
Foreign exchange risk is the risk of loss because of adverse movements in currency
exchange rates.
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