AUI3702 EXAM PACK
i i
1
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
,MAY/JUNE i2014
QUESTION i1
i MULTIPLE
CHOICEi1-D
i
2-A
3-A
4-C
5-D
6-D
7-D
8-B
9-C
10-B
QUESTION i2
2.1.
Weaknesses Controls
Overtime ihours iare inot iapproved iby Having ito iwork iovertime ishould ibe
isection ihead iof isupervisors iand iapproved iby ithe isection ihead ior ithe
iemployees iwork iovertime ias ithe ifeel. isupervisors
The isecurity ipersonal iwho imans ithe Security ipersonnel ishould ibe ipresent iat
ientrance iis ionly iin iplace iduring ibusy iall itimes ito iensure ithat iemployees iclocks
iperiods. ionly ionce iwith ithe iclock icard
There iis ino isegregation iof iduties ias There ishould ibe isegregation ion iduties iin
iApple iSmith inow ialmost ieverything iin ithe irespect ito iduties icarried iout iby iapple
idepartment smith iprobably ia isenior ipersonnel iwho
ireviews ithe iduties icarried iout iby ihim
The iclock icards iare inot imade iin iterms iof The ipersonnel idepartment ishould
iauthorized iemployee ilist iprepare ithe iclock icards iin iterms iof ithe
authorized iemployee ilist
No isegregation iof iduties Apple ismith ishould inot iperform iall ithe
iduties, ithere ishould ibe isegregation iof
iduties iin irespect ito iduties iperformed iby
apple ismith
There iare ino iindependent ireconciliations Independent ireviews iand ichecks ion ithe
iand ireviews ion ithe iwork iperformed i by iwork iperformed iby iapple ismith ishould ibe
apple ismith iand ithere iare ionly irandom carried iout iregularly iand inot ion irandom
2
REED TUTORIAL (PTY) LTD
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,checks basis
Granny itree icashes ithe icheque, iprepares Segregation iof iduties iis imore iessential iat
ithe ipay ipackets iand iupdates ithe ithis ilevel ias ifraud ican ibe ifacilitated iby
iaccounting irecords ihaving ione iperson iperforming iall
functions
Employees iare inot irequired ito ipresent Employees iare irequired ito ipresent itheir
itheir iidentification iwhen icollecting itheir iidentification iwhen icollecting itheir
payment payment
The itwo isenior ipersonnel iwho ihave The itwo isenior ipersonnel ishould ihave
iconducted ithe ipayment ihave inot ireconcile ithe iunclaimed iwages iwith ithe
reconciled ithe iunclaimed iwages iwith ithe iregister
iregister
Question i3
3.1 iExplain istep iby istep ihow iyou iwould iselect ia isample
Establish ithe iobjectives iof ithe isampling iplan
i
-define ithe iextent iand icomposition iof ithe ipopulation
-select ia isampling imethod
-determine ithe isample isize ito ibe itaken
-evaluate iand ireport iresults
Calculate isample isize
Sample isize i= itotal ivalue iof ipopulation
J,Factor
= i500 i000
10869,6 i= i46.10
Calculation iof iJ iFactor
= iprecision
Reliability ifactor
i
=(0,05 ix i500 i000)
2.3
=10869,6
Sample iinterval i= itotal ivalue iof iPP
Sample isize
3
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
, 500 i000
46,10
=10845,99
Ratio ianalysis iwill ibe iused iby ian iauditor iwhen iperforming ianalytical
iprocedures.iDuring ithe iperformance istage ian iauditor iwhen iauditing
itransactions iand iaccount ibalances, ifor idifferent iclasses iof itransactions
NB iAnalytical iprocedures iare iclassified ias isubstantive iprocedures.
Calculate ithe ifollowing iratios
36.1 iInventory iturnover irate i/ratio i= icost isales
Average iinvent
=21 i000/1100 i000 i+ i100000 i= i20
There iis ia iremarkable iimprovement
36.3. iGross iprofit iRatio
2014
i
Gross iprofit
Sale iX i100
i
=28 i000 i000 i– i21 i000 i000 ix i100
28 i000 i000
=25%
2013
25 i500 i000 i– i18700 i000 iX100
25 i500 i000
=26,67%
The igross iprofit ipercentage ideteriorated iduring ithe icurrent iyear ithis iis iattributable ito
ia idecline iin isales iin irelation ito iincrease iin icost iof isales.
Q37 iThe ishort icomings ion ithe iworking iPaper
4
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
i i
1
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
,MAY/JUNE i2014
QUESTION i1
i MULTIPLE
CHOICEi1-D
i
2-A
3-A
4-C
5-D
6-D
7-D
8-B
9-C
10-B
QUESTION i2
2.1.
Weaknesses Controls
Overtime ihours iare inot iapproved iby Having ito iwork iovertime ishould ibe
isection ihead iof isupervisors iand iapproved iby ithe isection ihead ior ithe
iemployees iwork iovertime ias ithe ifeel. isupervisors
The isecurity ipersonal iwho imans ithe Security ipersonnel ishould ibe ipresent iat
ientrance iis ionly iin iplace iduring ibusy iall itimes ito iensure ithat iemployees iclocks
iperiods. ionly ionce iwith ithe iclock icard
There iis ino isegregation iof iduties ias There ishould ibe isegregation ion iduties iin
iApple iSmith inow ialmost ieverything iin ithe irespect ito iduties icarried iout iby iapple
idepartment smith iprobably ia isenior ipersonnel iwho
ireviews ithe iduties icarried iout iby ihim
The iclock icards iare inot imade iin iterms iof The ipersonnel idepartment ishould
iauthorized iemployee ilist iprepare ithe iclock icards iin iterms iof ithe
authorized iemployee ilist
No isegregation iof iduties Apple ismith ishould inot iperform iall ithe
iduties, ithere ishould ibe isegregation iof
iduties iin irespect ito iduties iperformed iby
apple ismith
There iare ino iindependent ireconciliations Independent ireviews iand ichecks ion ithe
iand ireviews ion ithe iwork iperformed i by iwork iperformed iby iapple ismith ishould ibe
apple ismith iand ithere iare ionly irandom carried iout iregularly iand inot ion irandom
2
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
,checks basis
Granny itree icashes ithe icheque, iprepares Segregation iof iduties iis imore iessential iat
ithe ipay ipackets iand iupdates ithe ithis ilevel ias ifraud ican ibe ifacilitated iby
iaccounting irecords ihaving ione iperson iperforming iall
functions
Employees iare inot irequired ito ipresent Employees iare irequired ito ipresent itheir
itheir iidentification iwhen icollecting itheir iidentification iwhen icollecting itheir
payment payment
The itwo isenior ipersonnel iwho ihave The itwo isenior ipersonnel ishould ihave
iconducted ithe ipayment ihave inot ireconcile ithe iunclaimed iwages iwith ithe
reconciled ithe iunclaimed iwages iwith ithe iregister
iregister
Question i3
3.1 iExplain istep iby istep ihow iyou iwould iselect ia isample
Establish ithe iobjectives iof ithe isampling iplan
i
-define ithe iextent iand icomposition iof ithe ipopulation
-select ia isampling imethod
-determine ithe isample isize ito ibe itaken
-evaluate iand ireport iresults
Calculate isample isize
Sample isize i= itotal ivalue iof ipopulation
J,Factor
= i500 i000
10869,6 i= i46.10
Calculation iof iJ iFactor
= iprecision
Reliability ifactor
i
=(0,05 ix i500 i000)
2.3
=10869,6
Sample iinterval i= itotal ivalue iof iPP
Sample isize
3
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
, 500 i000
46,10
=10845,99
Ratio ianalysis iwill ibe iused iby ian iauditor iwhen iperforming ianalytical
iprocedures.iDuring ithe iperformance istage ian iauditor iwhen iauditing
itransactions iand iaccount ibalances, ifor idifferent iclasses iof itransactions
NB iAnalytical iprocedures iare iclassified ias isubstantive iprocedures.
Calculate ithe ifollowing iratios
36.1 iInventory iturnover irate i/ratio i= icost isales
Average iinvent
=21 i000/1100 i000 i+ i100000 i= i20
There iis ia iremarkable iimprovement
36.3. iGross iprofit iRatio
2014
i
Gross iprofit
Sale iX i100
i
=28 i000 i000 i– i21 i000 i000 ix i100
28 i000 i000
=25%
2013
25 i500 i000 i– i18700 i000 iX100
25 i500 i000
=26,67%
The igross iprofit ipercentage ideteriorated iduring ithe icurrent iyear ithis iis iattributable ito
ia idecline iin isales iin irelation ito iincrease iin icost iof isales.
Q37 iThe ishort icomings ion ithe iworking iPaper
4
REED TUTORIAL (PTY) LTD
www.reedtutorials.co.za
