FACULTY OF ECONOMIC AND FINANCIAL SCIENCES
DEPARTMENT COMMERCIAL ACCOUNTING
Subject: Auditing and Internal Control
Subject Code: AIC22A2 & AIC2AA2
Test: Test 1
Test date: 18 March 2016
Marks: 50 Marks
Duration: 1.5 Hour
Pages 4 (four) pages (including cover sheet)
No of questions 6 (Six)
Examiner: D de Villiers; B Kuzwayo; K Modisagae
Internal moderator: J Mamaile
Information to students:
1. You are allowed to use a calculator.
2. An answer sheet/book will be supplied to you, in which you must write your answers in. If you
need another book/sheet, please ask the invigilator for another.
3. By writing this test and affixing your name and student number to the answer sheet/book, you
confirm that you are conversant with the test regulations of the University.
4. Use only a blue or a black pen to answer your questions. Answers given in pencil will not be
marked.
5. Make sure your handwriting is neat and easy to read. Set out your answer in a clear logical
manner.
6. Use the same numbers for your answers as those used for the questions in the test/examination
paper.
7. Hand your answer book to the invigilator at the end of the test/examination.
, AIC22A2 – Test 1 - 2016
QUESTION 1 [10]
Appearing below is a list of different types of auditor and other individuals associated with the
financial world (Part A). A broad description of some of the activities carried out by these auditors or
individuals is also listed (Part B).
Part A:
1.1 Financial director
1.2 Company secretary
1.3 Chief executive officer
1.4 Chairperson
1.5 Operations director
1.6 Registered external auditor
1.7 Internal auditor
1.8 Independent accounting professional
1.9 Governmental auditor
1.10 Marketing director
Part B:
a) Expresses an opinion on whether the financial information presented by the Johannesburg City
Council to the government is fairly presented in terms of the government’s reporting framework.
b) Performs on behalf of the board an independent evaluation of whether a company is appropriately
addressing the risks faced by the company.
c) Independently compiles the annual financial statements of a private company.
d) Express an independent opinion on whether the financial statements of a company are fairly
presented.
e) Takes responsibility at board level for the adoption and implementation of the accounting policies
adopted by a company.
f) I am not involved in the daily operations of the company but I make sure that all essential items
are discussed in the board meetings and that the directors are held accountable for the work they
have to do.
g) I and my team make sure that consumers are well aware of the products of the company.
h) Ensuring that the company complies with all laws and regulations especially the Companies Act.
i) I am involved in the daily operations of the company and I need to ensure that the production is
running smoothly. This also includes insuring that all the raw materials needed for production are
obtained and stored safely in the store prior the actual production.
j) Drive the implementation of the company’s strategy as captain of the team.
REQUIRED:
Match each activity (Part B) to the individual (Part A) most likely to carry the activity (10)
Page 2 of 4
DEPARTMENT COMMERCIAL ACCOUNTING
Subject: Auditing and Internal Control
Subject Code: AIC22A2 & AIC2AA2
Test: Test 1
Test date: 18 March 2016
Marks: 50 Marks
Duration: 1.5 Hour
Pages 4 (four) pages (including cover sheet)
No of questions 6 (Six)
Examiner: D de Villiers; B Kuzwayo; K Modisagae
Internal moderator: J Mamaile
Information to students:
1. You are allowed to use a calculator.
2. An answer sheet/book will be supplied to you, in which you must write your answers in. If you
need another book/sheet, please ask the invigilator for another.
3. By writing this test and affixing your name and student number to the answer sheet/book, you
confirm that you are conversant with the test regulations of the University.
4. Use only a blue or a black pen to answer your questions. Answers given in pencil will not be
marked.
5. Make sure your handwriting is neat and easy to read. Set out your answer in a clear logical
manner.
6. Use the same numbers for your answers as those used for the questions in the test/examination
paper.
7. Hand your answer book to the invigilator at the end of the test/examination.
, AIC22A2 – Test 1 - 2016
QUESTION 1 [10]
Appearing below is a list of different types of auditor and other individuals associated with the
financial world (Part A). A broad description of some of the activities carried out by these auditors or
individuals is also listed (Part B).
Part A:
1.1 Financial director
1.2 Company secretary
1.3 Chief executive officer
1.4 Chairperson
1.5 Operations director
1.6 Registered external auditor
1.7 Internal auditor
1.8 Independent accounting professional
1.9 Governmental auditor
1.10 Marketing director
Part B:
a) Expresses an opinion on whether the financial information presented by the Johannesburg City
Council to the government is fairly presented in terms of the government’s reporting framework.
b) Performs on behalf of the board an independent evaluation of whether a company is appropriately
addressing the risks faced by the company.
c) Independently compiles the annual financial statements of a private company.
d) Express an independent opinion on whether the financial statements of a company are fairly
presented.
e) Takes responsibility at board level for the adoption and implementation of the accounting policies
adopted by a company.
f) I am not involved in the daily operations of the company but I make sure that all essential items
are discussed in the board meetings and that the directors are held accountable for the work they
have to do.
g) I and my team make sure that consumers are well aware of the products of the company.
h) Ensuring that the company complies with all laws and regulations especially the Companies Act.
i) I am involved in the daily operations of the company and I need to ensure that the production is
running smoothly. This also includes insuring that all the raw materials needed for production are
obtained and stored safely in the store prior the actual production.
j) Drive the implementation of the company’s strategy as captain of the team.
REQUIRED:
Match each activity (Part B) to the individual (Part A) most likely to carry the activity (10)
Page 2 of 4
