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    University of Zimbabwe

    Uploaded by

    Zvikomborero Lisah Kamupira
    This document is an exam paper for an Auditing II course consisting of 6 questions. It provides instructions for the exam, including the duration, authorized materials, and that answers should begin on a new page. The questions cover topics like general and application controls in an electronic data processing system, types of intentional misstatements relevant to auditors, typical activities in sales and wages cycles, audit assertions and procedures, attribute sampling steps, and requirements for audit working papers.

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    University of Zimbabwe

    Uploaded by

    Zvikomborero Lisah Kamupira
    100 views3 pages
    This document is an exam paper for an Auditing II course consisting of 6 questions. It provides instructions for the exam, including the duration, authorized materials, and that answers should begin on a new page. The questions cover topics like general and application controls in an electronic data processing system, types of intentional misstatements relevant to auditors, typical activities in sales and wages cycles, audit assertions and procedures, attribute sampling steps, and requirements for audit working papers.

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    AC220_2016_11

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    This document is an exam paper for an Auditing II course consisting of 6 questions. It provides instructions for the exam, including the duration, authorized materials, and that answers should begin on a new page. The questions cover topics like general and application controls in an electronic data processing system, types of intentional misstatements relevant to auditors, typical activities in sales and wages cycles, audit assertions and procedures, attribute sampling steps, and requirements for audit working papers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    100 views3 pages

    University of Zimbabwe

    Uploaded by

    Zvikomborero Lisah Kamupira
    This document is an exam paper for an Auditing II course consisting of 6 questions. It provides instructions for the exam, including the duration, authorized materials, and that answers should begin on a new page. The questions cover topics like general and application controls in an electronic data processing system, types of intentional misstatements relevant to auditors, typical activities in sales and wages cycles, audit assertions and procedures, attribute sampling steps, and requirements for audit working papers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    UNIVERSITY OF ZIMBABWE

    November/December 2016 Examinations


    Faculty: Commerce
    Department: Accountancy
    Paper code and Title: AC 220 Auditing II
    Duration: 3 hours
    Examiner:
    Mrs. L Nyikahadzoi

    Authorized Materials:

    INSTRUCTIONS:

    1. This paper contains 6 Questions


    2. Answer All questions
    3. Start each question on a new page
    4. This question paper comprises 3 printed pages

    NB: DO NOT TURN OVER THE QUESTION PAPER OR COMMENCE WRITING


    UNTIL INSTRUCTED TO DO SO.
    QUESTION 1 [10 MARKS]

    In a properly functioning electronic data processing accounting environment a good


    internal control system should include general and application controls.
    Required

    What are the general controls and application controls


    that should exist in an
    electronic data processing system. [10 marks]

    QUESTION 2 [15 marks]

    ISA 240 (Redrafted) requires that the auditor performs risk assessment procedures
    to obtain information for use in identifying the risks of material misstatement due to
    fraud.

    Required

    There are two types of intentional misstatements (fraud) relevant to the auditor and
    these are; Fraudulent financial reporting and Misappropriation of assets.
    a) Describe the ways in which Fraudulent financial reporting may be
    accomplished. [10 marks]

    b) Give some of the reasons for fraudulent financial reporting

    [5 marks]

    QUESTION 3 [30 MARKS]

    a) Outline the typical activities in a sales cycle [10 marks]

    b) You attend a typical wages pay out and have the opportunity to walk
    through the entire wages cycle. Describe the typical activities you would
    expect. [10 marks]

    c) Explain the following terms typical of a cash cycle:

    i) Skimming
    ii) Kiting
    iii) Lapping
    iv) Real time gross settlement (RTGS)
    v) Marketable securities [10 marks]

    QUESTION 4 [21 MARKS]

    The third standard of fieldwork requires that an auditor gathers sufficient and
    appropriate audit evidence.

    2
    REQUIRED:

    Express any seven management assertions embodied in the set of financial


    statements and the audit objectives formed by the auditor from them then suggest an
    audit procedure used to test the assertion

    ASSERTION I AUDIT OBJECTIVE AUDIT PROCEDURE


    [7marks] 7[marks] I [7marks]

    QUESTION 5 [14 marks]

    In auditing evidence gathering attribute sampling is used to estimate proportion of a


    population that possesses a specific characteristic.
    Required

    Outline the seven steps in the three stages of statistical attribute sampling
    marks] [10

    QUESTION 6

    You have been assigned to audit the financial statements of Tauya Trading
    Company for the year ending 31 December 2013. At the planning meeting, attended
    by all members of the audit team, the audit manager confirmed that the firm would
    adopt a risk-based approach to the audit, and for the benefit of the junior members of
    the team he explained the use of the audit risk_model comprising inherent risk,
    control risk and detection risk. The manager also explained the importance of
    preparing good audit working papers and confirmed that he expected the header of
    every working paper to be properly completed.
    REQUIRED

    i) Draw a typical working with all the necessary headings and summaries
    [10marks]
    ii) Name any 4 documents found in the current file [4marks]

    *******" END OF EXAM PAPER ***********"*

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