QUESTION 1 (20 marks) James Biggs is a new Trainee Auditor for Arthur Panders Incorporated. He has just completed his three-year degree and is very excited to join the firm. His father is the CEO of Basic Furniture (Pty) Ltd, and he indicated to Chester, one of the Partners of Arthur Panders, that Basic Furniture (Pty) Ltd is currently looking for auditors. Chester is very […]
Posted: April 11, 2024
Background and audit information You are the audit manager at Kagiso Incorporated (Kagiso), a firm of registered auditors with offices in all the major cities in South Africa. Kagiso has experienced exponential growth as a result of the partners being much more involved in marketing their services to various listed companies. You are currently engaged in the audit of Gym World Ltd (Gym World). Mandy […]
Posted: March 31, 2024
QUESTION 1 (50 marks) You are an Audit Senior at HP Incorporate. You were assigned to the audit of Meltdown (Pty) Ltd (“Meltdown”). Meltdown is a repairs and maintenance company for a group of apartments in the Western Cape. Meltdown stores most of its inventory and machinery needed for repairs at a warehouse in Cape Town, which Meltdown owns. Meltdown has a December 2023 financial […]
Posted: March 28, 2024
QUESTION 1 (50 marks) You are the audit manager of the audit of Felix (Pty) Ltd. You are currently reviewing the working papers for Accounts Receivable and Repairs and Maintenance for the financial year ending 31 December 2022. You have called the trainee on the audit to explain to you the assertions she will be testing relating to the following accounts: Repairs and Maintenance – […]
Posted: September 11, 2023
QUESTION (20 marks) According to the International Standard on Auditing: “The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatements, whether caused by error of fraud”. REQUIRED: Discuss the above statement with respect to the responsibilities of the professional auditor as well as the responsibilities of the Directors in an […]
Posted: May 20, 2023
QUESTION 1 (30 marks) During the audit of Taylors (Pty) Ltd, a large luxury travel luggage retailer, the following evidence was obtained: 1. The Financial Director informed you that all stock on hand at year-end was owned by Taylors (Pty) Ltd. 2. The Financial Director presented you with an email copy of a confirmation of a balance owed by a customer who lives in Ghana. […]
Posted: May 18, 2023
The health department of South Africa is responsible to provide proper medical care to all people. This duty includes the provision of proper hospital/clinic care, surgical procedures required, external equipment such as hearing aids and medication, including prescription medicines, antiretroviral drugs, vaccines, et cetera. All the hospitals have on-site access to the services of a full-time registered pharmacist. All medication is kept in the pharmacies […]
Posted: May 11, 2023
The Satyam Scandal Satyam Systems, a global IT company based in India, has just been added to a notorious list of companies involved in fraudulent financial activities, one that includes such names as Enron, WorldCom, Societe General, Parmalat, Ahold, Allied Irish, Bearings and Kidder Peabody. Satyam’s CEO, Ramalingam Raju, took responsibility for broad accounting improprieties that overstated the company’s revenues and profits and reported a […]
Posted: November 19, 2022
