8/9/2019 auditing and assurance services _ past exam questions

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TUMAINI UNIVERSITY DAR ESSALAAM COLLEGE

(A constituent College of Tumaini Maumi!a"

Faculty of Business Administration

Bachelor of Business Administration

Academic year 2013/2014 First Semester

University Special Final !amination

E#AMINATION NAME$ %RINCI%LES O& AUDITING I

E#AMINATION CODE$ ACCT ')

E#AMINATION DATE$ MARC* +t,- './

TIME ALLO0ED$ ) *OURS

GENERAL INSTRUCTIONS$

1. There are &OUR (/"questions in this paper2. Attempt ALL &OUR questions3. To facilitate time budgeting, marks are shown at the end of each question

(100 in total!.

". #how all $our workings in $our answer booklet.%. &o not write an$thing on the question paper, all rough works should be done

in the answer booklet and then cancelled.'. e clear speci)c and straight forward.+1 %ossessions of Mo2ile 3,one an4 an5 ot,e! un6aut,o!i7e4 mate!ial in

t,e e8amination !oom is st!ictl5 3!o,i2ite491 You a!e !emin4e4 to a4,e!e to ALL Uni:e!sit5 E8amination

Regulations1

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QUESTION ONE

(a) Explain the following terms as used in International Auditing Standards [IASs] and

auditing professional in general:

(i) Audit,

(ii) Audit risk,(iii) Internal control,

(i) Anal!tical procedures,() "ermanent audit file# [Each $ marks% &' arks in otal]

(*) ISA +' focuses on the concept of sampling and related procedures - reflecting the

contents of this standard and general knowledge o*tain in !our auditing course answer

the following .uestions:

(i) /hat are the differences *etween sampling and sampling risk0

[1 marks]

(ii) /h! sampling is used when proceeding with audit work0

[ marks](iii) State fie matters that auditor need to consider when making decisions on

the design of sample#

[1 marks](i) Explain the ke! differences *etween statistical and non2statistical

sampling to audit work# [1

marks]

[TOTAL 25 MARKS]

QUESTION TWO

(a) ISA &+ focuses on identif!ing and assessing the risks of material misstatement *!

attempting to understand *usiness entit! and its enironment - it is through this standard

that auditors are *eing cautioned that the! need to *e familiar or ac.uire necessar!

knowledge through preliminar! examination of their clients which include getting

ac.uainted with the nature of their *usiness operations#

Required:

(i) Identif! and gie *rief explanation to three sources of information for auditors

capa*le of assisting in getting familiar with their clients [3 arks](ii) State three adantages that auditors get *! getting familiar or understanding the

entit! and general enironment of their clients in particular audit engagement[1 arks]

(iii) Identif! and explain onl! SI4 ke! issues defining the client *usiness operations or

general *usiness enironment which auditors is expected to *e sensitie with

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*efore accepting audit engagement due to their high leel of risk in 5eopardi6ing

the .ualit! or achieement of audit o*5ecties [7 arks]

(*) ISA +'' - +88 coers different matters relating to audit evidence- define the term audit

eidence and proide 9IE different t!pe of audit eidence *! focusing on their methods

for which audit eidence ma! *e collected [; marks]

[TOTAL 25 MARKS]

QUESTION THREE

(a) ISA $&'

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Required:

(i) Identif! and *riefl! explain the ethical threats affecting the independence of

EA@ with regard to audit engagement with client E9B@ [;#+ arks](ii) 9or each threat !ou hae identified a*oe explain clearl! the means of aoiding

such threat [;#+ arks]

[TOTAL 25 MARKS]

QUESTION FOUR

(a) /hat does it mean *! Internal @ontrol S!stem0 [+ arks]

(*) Descri*e 9CGH main o*5ecties for an! organi6ation to hae sound internal control

s!stem# [&' arks]

(c) Based on ISA 3&' which proide for the a*ilit! of external auditor to use the work of

internal auditors- explain 9IE ke! factors more likel! to influence the decision of

external auditor to use the work of internal auditor# [&' arks][TOTAL 25 MARKS]

END OF EXAM

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