AUE1501
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
,AUE1501 OCTOBER NOVEMBER 2025 EXAM MEMO
1. Company names end with an abbreviation, which conveys their category.
Select the alternative that would indicate an example of a public company.
1. Eskom SOE Ltd.
2. Anglovaal Ltd.
3. Moale (Pty) Ltd.
4. Educate NPC.
Explanation: A public company in South Africa typically uses Ltd (without “(Pty)”).
(Pty) Ltd is a private company, and NPC is a non-profit company.
2. In the foreword to the King IV Report, the King committee pointed out that
the 21st Century is characterised by fundamental changes in both business
and the new global realities. Select the alternative that is not an example of the
referred realities.
1. Climate change.
2. Geographical tensions.
3. Stable financial systems.
4. A growing societal inequality.
Explanation: King IV highlights global instability and evolving risks. A stable
financial system is the opposite of the type of uncertainty described.
3. Select the alternative that is not a main objective of the King IV Report.
1. Promote corporate governance as integral to running the company and
delivering governance outcomes.
, 2. Increase the acceptance of King IV by making it accessible and versatile
across various sectors.
3. Reinforce corporate governance as a holistic and interrelated set of
arrangements to be understood and implemented in an integrated manner.
4. Relieve poverty and social inequalities.
Explanation: King IV promotes ethical governance and responsible corporate
citizenship, but it is not designed as a poverty-relief framework.
4. Select the alternative that is not an example of a type of control activity.
1. Isolation of responsibility.
2. Comparisons and reconciliation.
3. Access restrictions.
4. Potential of human error.
Explanation: Potential of human error is an inherent limitation of internal control,
not a control activity.
5. Which one of the following alternatives best completes the following
sentence?
……… is an unbiased mental attitude that allows auditors to perform engagements
in such a manner that others do not exert undue influence.
1. Confidentiality
2. Objectivity
3. Integrity
4. Due care
, Explanation: Objectivity means acting without bias, conflict of interest, or undue
influence.
6. Internal auditors fulfil a certain function in organisations. Select the
statement that is true.
1. The Chief Audit Executive functions at executive level.
2. All companies must have internal auditors.
3. To contribute at executive level an internal auditor must be registered with
SAICA.
4. There should be no interaction between the internal auditor, external auditor
and the audit committee for independence purposes.
Explanation: The CAE is senior and should have sufficient authority and
organisational standing. The other statements are incorrect.
7. Which one of the following statements is correct when considering whether
or not a private company is subject to an audit?
1. A private company that has a public interest score of more that 350 is not
subject to an audit.
2. A private company that has a public interest score of less than 100 but had its
annual financial statements for that year compiled internally, is subject to an
audit.
3. A private company that has a public interest score of more than 350 is subject
to an independent review.
4. A private company that has a public interest score of more than 350 is
subject to an audit.
Explanation: In terms of the Companies Act and Regulations, a PIS above the
relevant threshold generally triggers an audit requirement.
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
,AUE1501 OCTOBER NOVEMBER 2025 EXAM MEMO
1. Company names end with an abbreviation, which conveys their category.
Select the alternative that would indicate an example of a public company.
1. Eskom SOE Ltd.
2. Anglovaal Ltd.
3. Moale (Pty) Ltd.
4. Educate NPC.
Explanation: A public company in South Africa typically uses Ltd (without “(Pty)”).
(Pty) Ltd is a private company, and NPC is a non-profit company.
2. In the foreword to the King IV Report, the King committee pointed out that
the 21st Century is characterised by fundamental changes in both business
and the new global realities. Select the alternative that is not an example of the
referred realities.
1. Climate change.
2. Geographical tensions.
3. Stable financial systems.
4. A growing societal inequality.
Explanation: King IV highlights global instability and evolving risks. A stable
financial system is the opposite of the type of uncertainty described.
3. Select the alternative that is not a main objective of the King IV Report.
1. Promote corporate governance as integral to running the company and
delivering governance outcomes.
, 2. Increase the acceptance of King IV by making it accessible and versatile
across various sectors.
3. Reinforce corporate governance as a holistic and interrelated set of
arrangements to be understood and implemented in an integrated manner.
4. Relieve poverty and social inequalities.
Explanation: King IV promotes ethical governance and responsible corporate
citizenship, but it is not designed as a poverty-relief framework.
4. Select the alternative that is not an example of a type of control activity.
1. Isolation of responsibility.
2. Comparisons and reconciliation.
3. Access restrictions.
4. Potential of human error.
Explanation: Potential of human error is an inherent limitation of internal control,
not a control activity.
5. Which one of the following alternatives best completes the following
sentence?
……… is an unbiased mental attitude that allows auditors to perform engagements
in such a manner that others do not exert undue influence.
1. Confidentiality
2. Objectivity
3. Integrity
4. Due care
, Explanation: Objectivity means acting without bias, conflict of interest, or undue
influence.
6. Internal auditors fulfil a certain function in organisations. Select the
statement that is true.
1. The Chief Audit Executive functions at executive level.
2. All companies must have internal auditors.
3. To contribute at executive level an internal auditor must be registered with
SAICA.
4. There should be no interaction between the internal auditor, external auditor
and the audit committee for independence purposes.
Explanation: The CAE is senior and should have sufficient authority and
organisational standing. The other statements are incorrect.
7. Which one of the following statements is correct when considering whether
or not a private company is subject to an audit?
1. A private company that has a public interest score of more that 350 is not
subject to an audit.
2. A private company that has a public interest score of less than 100 but had its
annual financial statements for that year compiled internally, is subject to an
audit.
3. A private company that has a public interest score of more than 350 is subject
to an independent review.
4. A private company that has a public interest score of more than 350 is
subject to an audit.
Explanation: In terms of the Companies Act and Regulations, a PIS above the
relevant threshold generally triggers an audit requirement.
