AIC33B3 FINAL ASSESSMENT OPPORTUNITY
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PART A (each question counts 1 mark) [20 MARKS]
For questions 1-10, indicate whether the statement is true or false
1. Namhla Ltd’s employees are required to enter their usernames and passwords
to access various functions of the system. This is an example of a physical
access control.
2. Thando (Pty) Ltd stores its information in an external server that is not situated
in the company’s premises. This is an example of a backup.
3. There is only one auditing statement that is directly relevant to the
documentation of audit work performed.
4. ISQC1 requires the firm to establish policies and procedures for working papers
to be finalized on a timely basis.
5. The purpose of an audit is to enhance the degree of confidence of intended
users in the financial statements.
6. An auditor needs to consider whether the accounting estimates made by
management are reliable before making a conclusion on the financial
statements.
7. Any irregular expenditure discovered within a municipality must be reported to
the municipal manager.
8. King IV defines corporate governance as the exercise of effective and ethical
leadership by the governing body towards the achievement of ethical culture,
good performance, effective control and legitimacy.
9. The application regime to which King IV is built on is comply and explain.
10. Integrated thinking considers the connectivity and interdependency between
the range of factors that affect the company’s ability to increase revenue over
time.
For questions 11-20, select the most appropriate option/s
11. Which of the following is NOT a good control for passwords:
A. Using an individual password
B. Changing a password after one year
C. Not displaying password on laptop or computer
D. Using a password of at least 8 characters, a mix of letters and numbers
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, AIC33B3 FINAL ASSESSMENT OPPORTUNITY
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12. The use of data orientated CAATs is regarded as:
A. Auditing with the computer
B. Auditing around the computer
C. Auditing by the computer
D. Auditing through the computer
13. Which of the following is a factor influencing the decision to use CAATS:
A. Data stored in normal form
B. Potential loss of independence
C. Attitude of the auditor
D. Compatibility of the client’s hardware and software
14. The opinion section of the audit report should include:
A. Name of the auditor
B. Refer to notes and significant accounting standards
C. Indicate the applicable financial reporting framework and other legislative
requirements
D. Specify the venue in which the financial statements were audited
15. An auditor should NOT issue an unmodified opinion unless:
A. The audit has not been carried out free of restriction
B. Satisfied about the existence of income
C. Proper accounting records have been kept in at least two of the official
languages
D. All information necessary to conduct the audit has been obtained
16. If an auditor concludes that the financial statements contain pervasive and
material misstatements due to disagreement with management. Which type of
opinion should be expressed:
A. Disclaimer of opinion
B. Adverse opinion
C. Unmodified opinion
D. Qualified (except) for
17. The Public Financial Management Act (PFMA) is NOT applicable to:
A. All national departments
B. Constitutional institution
C. Municipalities including municipal entities
D. National or trading entities
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Page 2 of 10
_________________________________________________________________________________
PART A (each question counts 1 mark) [20 MARKS]
For questions 1-10, indicate whether the statement is true or false
1. Namhla Ltd’s employees are required to enter their usernames and passwords
to access various functions of the system. This is an example of a physical
access control.
2. Thando (Pty) Ltd stores its information in an external server that is not situated
in the company’s premises. This is an example of a backup.
3. There is only one auditing statement that is directly relevant to the
documentation of audit work performed.
4. ISQC1 requires the firm to establish policies and procedures for working papers
to be finalized on a timely basis.
5. The purpose of an audit is to enhance the degree of confidence of intended
users in the financial statements.
6. An auditor needs to consider whether the accounting estimates made by
management are reliable before making a conclusion on the financial
statements.
7. Any irregular expenditure discovered within a municipality must be reported to
the municipal manager.
8. King IV defines corporate governance as the exercise of effective and ethical
leadership by the governing body towards the achievement of ethical culture,
good performance, effective control and legitimacy.
9. The application regime to which King IV is built on is comply and explain.
10. Integrated thinking considers the connectivity and interdependency between
the range of factors that affect the company’s ability to increase revenue over
time.
For questions 11-20, select the most appropriate option/s
11. Which of the following is NOT a good control for passwords:
A. Using an individual password
B. Changing a password after one year
C. Not displaying password on laptop or computer
D. Using a password of at least 8 characters, a mix of letters and numbers
_________________________________________________________________________________
Page 1 of 10
, AIC33B3 FINAL ASSESSMENT OPPORTUNITY
_________________________________________________________________________________
12. The use of data orientated CAATs is regarded as:
A. Auditing with the computer
B. Auditing around the computer
C. Auditing by the computer
D. Auditing through the computer
13. Which of the following is a factor influencing the decision to use CAATS:
A. Data stored in normal form
B. Potential loss of independence
C. Attitude of the auditor
D. Compatibility of the client’s hardware and software
14. The opinion section of the audit report should include:
A. Name of the auditor
B. Refer to notes and significant accounting standards
C. Indicate the applicable financial reporting framework and other legislative
requirements
D. Specify the venue in which the financial statements were audited
15. An auditor should NOT issue an unmodified opinion unless:
A. The audit has not been carried out free of restriction
B. Satisfied about the existence of income
C. Proper accounting records have been kept in at least two of the official
languages
D. All information necessary to conduct the audit has been obtained
16. If an auditor concludes that the financial statements contain pervasive and
material misstatements due to disagreement with management. Which type of
opinion should be expressed:
A. Disclaimer of opinion
B. Adverse opinion
C. Unmodified opinion
D. Qualified (except) for
17. The Public Financial Management Act (PFMA) is NOT applicable to:
A. All national departments
B. Constitutional institution
C. Municipalities including municipal entities
D. National or trading entities
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Page 2 of 10
