AUE2602 EXAM PACK 2020
i i i
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AUE2602
EXAM PACK i
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Distribution of this document is illegal
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THIS iPAPER iCONSISTS iOF iSEVEN i(7) iPAGES.
This ipaper iconsists iof ithe ifollowing iquestions iand imain itopics:
QUESTION MAIN iTOPIC MARKS
1 Corporate i governance, i internal i controls i and i the i acquisitions i and 50
payments icycle
2 Internal i controls, i revenue i and i receipts i cycle, i acquisition i and 50
payments i cycle, i inventory i and i production i cycle, i payroll i and
personnel icycle iand ifinance iand iinvestment icycle i
i 100 ii
NOTE:
Although ithe iprimary ipurpose iof ithe iexamination iis ito itest iyour iknowledge iand iapplication iof ithe isubject
i matter, iyour iability ito iorganise iand ipresent isuch iknowledge i in iwritten i language iof ian iacceptable istandard
iwill ibe itaken i into iconsideration iby ithe iexaminers.
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- i2 i- AUE2602
October/November i2018
QUESTION i1 50 iMARKS
Modern iClosets iLimited iis ia ilarge imanufacturing icompany isituated iin iJohannesburg, iSouth iAfrica. iThey ispecialise
iin ithe i design iand iconstruction i of iclosets iand icabinets ifor iprivate i or icommercial iuse. iThe icompany i was istarted i in
i1987 iby iMr iJay iand i is icurrently iconsidering i whether iit i should i list ion ithe iJohannesburg iStock iExchange i(JSE).
The iboard iof idirectors
Mr iJay Chairperson iof ithe iboard. iMr iJay iwas ithe iChief iExecutive iOfficer iof iModern iClosets ifor i20iyears, ibut
iretired ilast iyear.
Ms iClaire Chief iExecutive iOfficer i(CEO) iand iCA(SA). iMs iClaire iis ithe idaughter iof iMr iJay.
Mr iMitch Chief iOperating iOfficer i(COO) iand iqualified ilawyer. iMr iMitch iis ithe ison iof iMr iJay.
Mrs iGloria Non-executive idirector iand imarried ito iMr iJay.
Mr iCam Non-executive idirector iwho icurrently ihas i1% ishareholding iin iModern iClosets.
Mr iPhil Non-executive i director i with i no i relationship i with i the i other i directors i or i officers i of i Modern
iClosets.
Ms iLilly Non-executive i director i and i partner i in i the i legal i firm i that i assists i Modern i Closets i in i their
ibusiness.
Mr iJay iwas inever itoo iconcerned iabout ithe icorporate igovernance iof ithe icompany ias ihe ihad ia ivery ihands- ion iapproach
ito irunning ithe ibusiness. iHowever, iMs iClaire iwants ito iensure ithat iModern iClosets iis ifollowingithe irecommendations i of
ithe iKing iIV iReport i with iregard ito i ethical i leadership.
Ms iClaire ialso iknows ithat iher ifather ihas inever iappointed iboard icommittees iand iis iconcerned ithat ithey icanino ilonger ijust
iexplain i why. iShe i wants ito iappoint ithe irequired iboard icommittees ias isoon ias ipossible.
Internal icontrols
Mr iJay iis inot ia ifan iof ithe icomputerised isystems ithat ihave ibeen iimplemented iat iModern iClosets iover ithe ipast ifew
iyears. iAs isuch, i he i has inever iused isome i of ithe ibuilt-in ifunctionalities. iNow ithat iMs iClaire i is ithe iCEO, ishe i knows ithat
ithe isoftware i has idifferent ifunctions iand ican igenerate i different ireports, iwhich ican ibeiused ito iher iadvantage. iHowever,
ishe i is iunsure iwhat ithey irelate ito iand iwhat i would ibe iuseful ito iher.
She iknows ithat ithe iinternal iaudit iteam ialways iwants ito ilink ithe icontrols ito ithe icontrol iobjectives ibeing ioccurrence
iand iauthorisation, iaccuracy iand icompleteness.
She iis ispecifically iinterested iin ithe ifollowing icontrol iand ireport ifunctionalities iof ithe isoftware:
a. Audit itrails
b. Mandatory ifields
c. Override ireports
d. Validation ichecks
e. Activity ireports
f. Sequence ichecks
g. Valid icharacter iand isign ichecks
Acquisitions iand ipayments
Owing ito ithe iway iMr iJay iran ithe ibusiness, iModern iClosets ihas ialways imade ipayments iby iway iof iphysicalicheques. iMr
iMitch iis iin ithe iprocess iof iimplementing ia icomputerised isystem ithat iwould imake iEFT ipayments
[TURN iOVER]
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i i i
Downloaded by: prelisha |
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, Stuvia.com - The study-notes marketplace
AUE2602
EXAM PACK i
Downloaded by: prelisha |
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
THIS iPAPER iCONSISTS iOF iSEVEN i(7) iPAGES.
This ipaper iconsists iof ithe ifollowing iquestions iand imain itopics:
QUESTION MAIN iTOPIC MARKS
1 Corporate i governance, i internal i controls i and i the i acquisitions i and 50
payments icycle
2 Internal i controls, i revenue i and i receipts i cycle, i acquisition i and 50
payments i cycle, i inventory i and i production i cycle, i payroll i and
personnel icycle iand ifinance iand iinvestment icycle i
i 100 ii
NOTE:
Although ithe iprimary ipurpose iof ithe iexamination iis ito itest iyour iknowledge iand iapplication iof ithe isubject
i matter, iyour iability ito iorganise iand ipresent isuch iknowledge i in iwritten i language iof ian iacceptable istandard
iwill ibe itaken i into iconsideration iby ithe iexaminers.
Downloaded by: prelisha |
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
- i2 i- AUE2602
October/November i2018
QUESTION i1 50 iMARKS
Modern iClosets iLimited iis ia ilarge imanufacturing icompany isituated iin iJohannesburg, iSouth iAfrica. iThey ispecialise
iin ithe i design iand iconstruction i of iclosets iand icabinets ifor iprivate i or icommercial iuse. iThe icompany i was istarted i in
i1987 iby iMr iJay iand i is icurrently iconsidering i whether iit i should i list ion ithe iJohannesburg iStock iExchange i(JSE).
The iboard iof idirectors
Mr iJay Chairperson iof ithe iboard. iMr iJay iwas ithe iChief iExecutive iOfficer iof iModern iClosets ifor i20iyears, ibut
iretired ilast iyear.
Ms iClaire Chief iExecutive iOfficer i(CEO) iand iCA(SA). iMs iClaire iis ithe idaughter iof iMr iJay.
Mr iMitch Chief iOperating iOfficer i(COO) iand iqualified ilawyer. iMr iMitch iis ithe ison iof iMr iJay.
Mrs iGloria Non-executive idirector iand imarried ito iMr iJay.
Mr iCam Non-executive idirector iwho icurrently ihas i1% ishareholding iin iModern iClosets.
Mr iPhil Non-executive i director i with i no i relationship i with i the i other i directors i or i officers i of i Modern
iClosets.
Ms iLilly Non-executive i director i and i partner i in i the i legal i firm i that i assists i Modern i Closets i in i their
ibusiness.
Mr iJay iwas inever itoo iconcerned iabout ithe icorporate igovernance iof ithe icompany ias ihe ihad ia ivery ihands- ion iapproach
ito irunning ithe ibusiness. iHowever, iMs iClaire iwants ito iensure ithat iModern iClosets iis ifollowingithe irecommendations i of
ithe iKing iIV iReport i with iregard ito i ethical i leadership.
Ms iClaire ialso iknows ithat iher ifather ihas inever iappointed iboard icommittees iand iis iconcerned ithat ithey icanino ilonger ijust
iexplain i why. iShe i wants ito iappoint ithe irequired iboard icommittees ias isoon ias ipossible.
Internal icontrols
Mr iJay iis inot ia ifan iof ithe icomputerised isystems ithat ihave ibeen iimplemented iat iModern iClosets iover ithe ipast ifew
iyears. iAs isuch, i he i has inever iused isome i of ithe ibuilt-in ifunctionalities. iNow ithat iMs iClaire i is ithe iCEO, ishe i knows ithat
ithe isoftware i has idifferent ifunctions iand ican igenerate i different ireports, iwhich ican ibeiused ito iher iadvantage. iHowever,
ishe i is iunsure iwhat ithey irelate ito iand iwhat i would ibe iuseful ito iher.
She iknows ithat ithe iinternal iaudit iteam ialways iwants ito ilink ithe icontrols ito ithe icontrol iobjectives ibeing ioccurrence
iand iauthorisation, iaccuracy iand icompleteness.
She iis ispecifically iinterested iin ithe ifollowing icontrol iand ireport ifunctionalities iof ithe isoftware:
a. Audit itrails
b. Mandatory ifields
c. Override ireports
d. Validation ichecks
e. Activity ireports
f. Sequence ichecks
g. Valid icharacter iand isign ichecks
Acquisitions iand ipayments
Owing ito ithe iway iMr iJay iran ithe ibusiness, iModern iClosets ihas ialways imade ipayments iby iway iof iphysicalicheques. iMr
iMitch iis iin ithe iprocess iof iimplementing ia icomputerised isystem ithat iwould imake iEFT ipayments
[TURN iOVER]
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