Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Audit Examination: Role and Practice of Audit, May/June 2012, Exams of Auditing

An exam paper for the arholiadau audit examination held in may/june 2012. The exam covers various topics related to audit, including the role and practice of audit, non-audit services, audit engagement letters, use of sampling, internal controls, and going concern concept. Candidates are required to answer one question from section a and two questions from section b, with each question carrying equal marks.

Typology: Exams

2011/2012

Uploaded on 12/06/2012

abhaya
abhaya 🇮🇳

3.5

(11)

167 documents

1 / 3

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
1
ARHOLIADAU EXAMINATIONS
Mai / Mehefin 2012 May / June 2012
AC31720 THE ROLE AND PRACTICE OF AUDIT
Time allowed: THREE hours
Answer ONE QUESTION from SECTION A
AND
Answer TWO QUESTIONS from SECTION B
All questions carry equal marks. Where questions comprise of multiple parts, their
weightings are clearly indicated.
SECTION A
(answer one question from this section)
Question A1
(a)
Evaluate the view that the Caparo case undermined the role
of audit by threatening both actual audit quality and the
public perception of its worth.
60 marks
(b)
Discuss the auditor’s responsibility relating to fraud.
40 marks
Total
100 marks
Question A2
(a)
Discuss the meaning and development of ‘non-audit
services’.
20 marks
(b)
Critically evaluate the view that provision by the auditor of
non-audit services should be prohibited.
80 marks
Total
100 marks
TURN OVER
pf3

Partial preview of the text

Download Audit Examination: Role and Practice of Audit, May/June 2012 and more Exams Auditing in PDF only on Docsity!

ARHOLIADAU EXAMINATIONS

Mai / Mehefin 2012 May / June 2012

AC31720 THE ROLE AND PRACTICE OF AUDIT

Time allowed: THREE hours

Answer ONE QUESTION from SECTION A

AND

Answer TWO QUESTIONS from SECTION B

All questions carry equal marks. Where questions comprise of multiple parts, their weightings are clearly indicated.

SECTION A

(answer one question from this section)

Question A

(a) Evaluate the view that the Caparo case undermined the role of audit by threatening both actual audit quality and the public perception of its worth. 60 marks

(b) Discuss the auditor’s responsibility relating to fraud. 40 marks

Total 100 marks

Question A

(a) Discuss the meaning and development of ‘non-audit services’. 20 marks

(b) Critically evaluate the view that provision by the auditor of non-audit services should be prohibited. 80 marks

Total 100 marks

TURN OVER

SECTION B

(answer two questions from this section)

Question B

(a) Explain the purpose and content of an audit engagement letter. 20 marks

(b) Your audit firm is about to take on a new client, which is an owner-managed limited company that has been trading for three years. It runs a small chain of popular restaurants in tourist resorts across Wales. The financial statements are prepared by a self-employed Chartered Accountant. Explain the actions you would take before signing the engagement letter. 40 marks

(c) Discuss the ‘business risk’ approach to audit, and evaluate its suitability for the new client described in (b). 40 marks

Total 100 marks

Question B

(a) Discuss the use of sampling in gathering audit evidence. 40 marks

(b) Explain the purpose of external confirmation of assertions regarding trade receivables (debtors). 20 marks

(c) Discuss characteristics of reliable information; and explain how take these into account in designing a debtors’ confirmation test. 40 marks

Total 100 marks

Question B

(a) Explain the internal controls over cash that you would expect to find either in a bar and restaurant or in an owner-managed shop. 30 marks

(b) Explain to a new recruit to your audit firm the actions of the auditor attending a stocktake. 40 marks

(c) Discuss the auditor’s responsibilities where weaknesses in internal control have been identified. 30 marks

Total 100 marks

TURN OVER