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HRM3706 SUMMARISED NOTES
AUE2601 EXAM
PACK 2027
FOR ASSISTANCE CONTACT
, lOMoARcPSD|48011787
With which of the following requirements should an individual who wishes to become a
member of the South African Institute of Chartered Accountants (SAICA) comply?
You should choose all the options representing requirements that should be met in
order to register as a member.
a.
Obtain a recognised qualification from an accredited university.
b.
Pass the Initial test of Competence (ITC) examination and the Assessment of Professional
Competence (APC) examination
c.
Complete a training contract in public practice
d.
Satisfy the requirements of the Audit Development Programme subsequent to meeting
the requirements for registration as a chartered accountant.
Feedback
Your answer is partially correct.
You have correctly selected 2.
References
· Auditing Notes for South African Students (2021:1/10)
The correct answers are:
Obtain a recognised qualification from an accredited university.,
Pass the Initial test of Competence (ITC) examination and the Assessment of Professional
Competence (APC) examination,
Complete a training contract in public practice
Question 2
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Partially correct
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Question text
Match the correct description of the following threats to compliance with the
fundamental principles:
Professional accountants quote a low fee to obtain a new
engagement, but the fee is so low that it might be difficult to Answer 1
perform the professional service in accordance with applicable Self-interest threat
technical and professional standards of practice.
A professional accountant has prepared the original data used to
Answer 2
generate the records that are the subject matter of the assurance
Self-interest threat
engagement.
A professional accountant lobbies in favour of legislation on Answer 3
behalf of a client. Self-review threat
A professional accountant has a close family member who is the Answer 4
director of the client. Familiarity threat
A professional accountant accepted a significant gift from a
Answer 5
client and threatened that acceptance of the gift will be made
Self-interest threat
public.
Feedback
Your answer is partially correct.
You have correctly selected 2.
References
· Code of Professional Conduct, sections 300.6 A1, included in SAICA student
handbook, Volume 2B
· Auditing notes for South African students (2021): 2/22–2/37
Threat Description
Self-interest threat Professional accountants quote a low fee to obtain a new
engagement, but the fee is so low that it might be difficult to perform
the professional service in accordance with applicable technical and
professional standards of practice.
Self-review threat A professional accountant has prepared the original data used to
generate the records that are the subject matter of the assurance
engagement.
Advocacy threat A professional accountant lobbies in favour of legislation on behalf
of a client.
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48011787
Familiarity threat A professional accountant has a close family member who is the
director of the client.
Intimidation threat A professional accountant accepted a significant gift from a client
and threatened that acceptance of the gift will be made public.
The correct answer is:
Professional accountants quote a low fee to obtain a new engagement, but the fee is so
low that it might be difficult to perform the professional service in accordance with
applicable technical and professional standards of practice. → Self-interest threat,
A professional accountant has prepared the original data used to generate the records
that are the subject matter of the assurance engagement. → Self-review threat,
A professional accountant lobbies in favour of legislation on behalf of a client. →
Advocacy threat,
A professional accountant has a close family member who is the director of the client. →
Familiarity threat,
A professional accountant accepted a significant gift from a client and threatened that
acceptance of the gift will be made public. → Intimidation threat
Question 3
Correct
Mark 2.00 out of 2.00
Flag question
Question text
Section 44 of the Auditing Profession Amendment Act stipulates the circumstances
under which the auditor may issue an unqualified audit opinion.
Choose the option that correctly indicates the circumstances under which the auditor
may issue an unqualified audit opinion.
Note that there may be more than one correct option.
a.
The audit was carried out free from restrictions
b.
The auditors were able to satisfy themselves of the existence of all assets and liabilities
shown in the financial statements
Downloaded by Vincent kyalo ()
HRM3706 SUMMARISED NOTES
AUE2601 EXAM
PACK 2027
FOR ASSISTANCE CONTACT
, lOMoARcPSD|48011787
With which of the following requirements should an individual who wishes to become a
member of the South African Institute of Chartered Accountants (SAICA) comply?
You should choose all the options representing requirements that should be met in
order to register as a member.
a.
Obtain a recognised qualification from an accredited university.
b.
Pass the Initial test of Competence (ITC) examination and the Assessment of Professional
Competence (APC) examination
c.
Complete a training contract in public practice
d.
Satisfy the requirements of the Audit Development Programme subsequent to meeting
the requirements for registration as a chartered accountant.
Feedback
Your answer is partially correct.
You have correctly selected 2.
References
· Auditing Notes for South African Students (2021:1/10)
The correct answers are:
Obtain a recognised qualification from an accredited university.,
Pass the Initial test of Competence (ITC) examination and the Assessment of Professional
Competence (APC) examination,
Complete a training contract in public practice
Question 2
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48011787
Partially correct
Mark 0.80 out of 2.00
Flag question
Question text
Match the correct description of the following threats to compliance with the
fundamental principles:
Professional accountants quote a low fee to obtain a new
engagement, but the fee is so low that it might be difficult to Answer 1
perform the professional service in accordance with applicable Self-interest threat
technical and professional standards of practice.
A professional accountant has prepared the original data used to
Answer 2
generate the records that are the subject matter of the assurance
Self-interest threat
engagement.
A professional accountant lobbies in favour of legislation on Answer 3
behalf of a client. Self-review threat
A professional accountant has a close family member who is the Answer 4
director of the client. Familiarity threat
A professional accountant accepted a significant gift from a
Answer 5
client and threatened that acceptance of the gift will be made
Self-interest threat
public.
Feedback
Your answer is partially correct.
You have correctly selected 2.
References
· Code of Professional Conduct, sections 300.6 A1, included in SAICA student
handbook, Volume 2B
· Auditing notes for South African students (2021): 2/22–2/37
Threat Description
Self-interest threat Professional accountants quote a low fee to obtain a new
engagement, but the fee is so low that it might be difficult to perform
the professional service in accordance with applicable technical and
professional standards of practice.
Self-review threat A professional accountant has prepared the original data used to
generate the records that are the subject matter of the assurance
engagement.
Advocacy threat A professional accountant lobbies in favour of legislation on behalf
of a client.
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48011787
Familiarity threat A professional accountant has a close family member who is the
director of the client.
Intimidation threat A professional accountant accepted a significant gift from a client
and threatened that acceptance of the gift will be made public.
The correct answer is:
Professional accountants quote a low fee to obtain a new engagement, but the fee is so
low that it might be difficult to perform the professional service in accordance with
applicable technical and professional standards of practice. → Self-interest threat,
A professional accountant has prepared the original data used to generate the records
that are the subject matter of the assurance engagement. → Self-review threat,
A professional accountant lobbies in favour of legislation on behalf of a client. →
Advocacy threat,
A professional accountant has a close family member who is the director of the client. →
Familiarity threat,
A professional accountant accepted a significant gift from a client and threatened that
acceptance of the gift will be made public. → Intimidation threat
Question 3
Correct
Mark 2.00 out of 2.00
Flag question
Question text
Section 44 of the Auditing Profession Amendment Act stipulates the circumstances
under which the auditor may issue an unqualified audit opinion.
Choose the option that correctly indicates the circumstances under which the auditor
may issue an unqualified audit opinion.
Note that there may be more than one correct option.
a.
The audit was carried out free from restrictions
b.
The auditors were able to satisfy themselves of the existence of all assets and liabilities
shown in the financial statements
Downloaded by Vincent kyalo ()
