ASPECTS OF INTERNAL CONTROLS AND CORPORATE GOVERNANCE-AUE2602
AUE2602 EXAM PACK
ASPECTS OF INTERNAL CONTROLS AND CORPORATE GOVERNANCE-AUE2602
,Contents
STUDY NOTES ..................................................................................................................... 3
HOW TO EARN MARKS ...................................................................................................... 17
Access Controls ................................................................................................................. 19
Examples of tests of controls questions ........................................................................... 2
1. Board of directors ......................................................................................................... 6
Composition of the board ................................................................................................. 6
What is an independent non-executive director? (Principle 2.18 (par 67), King Report) .. 6
2. Board committees ........................................................................................................ 7
3. Governance of risk ....................................................................................................... 9
4. Governance of Information Technology ....................................................................... 9
5. Internal audit ............................................................................................................... 10
6. Sustainability, integrated reporting and disclosure ...................................................... 10
7. The link between governance principles and law ........................................................ 11
Introduction ..................................................................................................................... 13
May/June 2013 ................................................................................................................. 16
OCTOBER / NOVEMBER 2014 ............................................................................................ 26
MAY/JUNE 2014 EXAM PACK ............................................................................................. 29
May 2014 References ........................................................................................................ 33
Exam Paper ....................................................................................................................... 36
Nov 2013 Memo References ............................................................................................. 45
,Question papers are attached on separate sheets, and some
are also accessible on myunisa.
, STUDY NOTES
Introduction
Students often ask where internal control and controls in a computerized environment fit into the audit
process.
In terms of ISA 315 (par 5 and 6), auditors are required to perform risk assessment procedures. These
procedures are performed to obtain an understanding of the entity and its environment (including
internal control) sufficient to identify and assess risks of material misstatement, whether due to fraud
or error.
When the auditor identifies and assesses the risks of material misstatement, it should be done
at:
(i) the financial statement level;
AND
(ii) the assertion level for classes of transactions, account balances and disclosures.
This provides a basis for designing and performing further audit procedures.
ISA 315 (par 26) highlights the following for this purpose:
• identification of risks (through the process of obtaining an understanding of the entity
and its
AUE2602 EXAM PACK
ASPECTS OF INTERNAL CONTROLS AND CORPORATE GOVERNANCE-AUE2602
,Contents
STUDY NOTES ..................................................................................................................... 3
HOW TO EARN MARKS ...................................................................................................... 17
Access Controls ................................................................................................................. 19
Examples of tests of controls questions ........................................................................... 2
1. Board of directors ......................................................................................................... 6
Composition of the board ................................................................................................. 6
What is an independent non-executive director? (Principle 2.18 (par 67), King Report) .. 6
2. Board committees ........................................................................................................ 7
3. Governance of risk ....................................................................................................... 9
4. Governance of Information Technology ....................................................................... 9
5. Internal audit ............................................................................................................... 10
6. Sustainability, integrated reporting and disclosure ...................................................... 10
7. The link between governance principles and law ........................................................ 11
Introduction ..................................................................................................................... 13
May/June 2013 ................................................................................................................. 16
OCTOBER / NOVEMBER 2014 ............................................................................................ 26
MAY/JUNE 2014 EXAM PACK ............................................................................................. 29
May 2014 References ........................................................................................................ 33
Exam Paper ....................................................................................................................... 36
Nov 2013 Memo References ............................................................................................. 45
,Question papers are attached on separate sheets, and some
are also accessible on myunisa.
, STUDY NOTES
Introduction
Students often ask where internal control and controls in a computerized environment fit into the audit
process.
In terms of ISA 315 (par 5 and 6), auditors are required to perform risk assessment procedures. These
procedures are performed to obtain an understanding of the entity and its environment (including
internal control) sufficient to identify and assess risks of material misstatement, whether due to fraud
or error.
When the auditor identifies and assesses the risks of material misstatement, it should be done
at:
(i) the financial statement level;
AND
(ii) the assertion level for classes of transactions, account balances and disclosures.
This provides a basis for designing and performing further audit procedures.
ISA 315 (par 26) highlights the following for this purpose:
• identification of risks (through the process of obtaining an understanding of the entity
and its
