UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS. UNISA |Sex AUE1501 Mayldune 2017 INTRODUCTION TO AUDITING Duraton 2 Hours 100 Marks EXAMINATION PANEL AS APPOINTED BY THE DEPARTMENT Use of a non-programmable pocket calculator 1s permissible Closed book examination This examination question paper remains the property of the University of South Africa and may not be removed from the examination venue.UNIVERSITY EXAMINATIONS. UNIVERSITEITSEKSAMENS: mm UNISA lesz AUE1501 May/June 2017 INTRODUCTION TO AUDITING Duration 2 Hours 100 Marks EXAMINATION PANEL AS APPOINTED BY THE DEPARTMENT Use of a non-programmable pocket calculator 1s permissible. Closed book examination ‘This examination question paper remains the property of the University of South Africa and may not be removed from the examination venue THIS EXAMINATION QUESTION PAPER CONSISTS OF EIGHT (8) PAGES ‘This paper consists of five (5) questions and includes the following main topics PART MAIN TOPIC MARKS 1. Multipte-choice questions 18 2 Identification of documents 16 3 Differences between the external auditor and internal auditors 9 4 Controls for the revenue and receipts cycle 30 Risks associated with the acquisitions and payments cycle 2 190 NOTE Although the primary purpose of the examination 1s to test a candidate's knowledge and applicaton of the subject matter, the examiner will also consider the ability to organise and present such knowledge in acceptable, wntten language [TURN OVER]2 AUE1501 May/June 2017 QUESTION 1 18 marks: This section consists of 12 multiple-choice questions counting 17 marks each REQUIRED For each question, select only one alternative that you consider to be the most appropriate Your answers will not be marked negatively Answer the questions in numerical sequence and set out your answer as follows in your script QUESTION 1 oA 2. Beetc) 1. You wish to start your own business to repair cellphones You are considering starting up as a sole propnetor and you are also considering all the advantages and disadvantages of being a sole propnetor Select the statement that would be considered an advantage of being a sole propnetor as a type of business A Asole propnetor’s skills may be limited B__ Asole propnetor may be held personally liable for all debts C There are few legal requirements for setting up as a sole proprietor D To obtam business capital for a sole proprietorship you will have to obtain limited business capital as an individual 2. One of the key concepts of corporate governance 1s sustainability Select the alternate that may be regarded as promoting sustainability in a large business A The business does not uplift the communtty through communtty projects B_ The manufacturing process of the business pollutes nvers The interests of management and shareholders of the business are important ° The legitimate interest and expectations of all stakeholders are taken into account in decision making {TURN OVER]