Hi, Can you guys have me to answer these question? beacause i will have an exam this week. Thanks a lot

Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. Subject Code: ACC302 Subject Title: Auditing and Assurance Length of Exam: 3 hours Reading Time: Additional 10 minutes Total Number of Questions: 6 Questions Total Marks: 100 Marks - Assessable Value 60 Marks READ THE FOLLOWING INSTRUCTIONS BEFORE COMMENCING THE EXAMINATION 1. 2. 3. 4. 5. Please fill in your name and student details on the front page of this examination booklet. Complete the examination in this booklet and hand it in on completion of the exam. Students are not to retain this examination booklet. No writing during reading time. Please use a black or a dark blue ink pen only. Pencil is not allowed. The exam comprises 6 Questions as noted below - please answer all questions Marking Table - For Academic Use Only Question Number Marks Available Q1 Q2 Q3 Q4 Q5 Q6 20 20 15 15 15 15 TOTAL Assessable Value 100 60 Marks Awarded ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 1 of 14 Sample Exam Booklet Undergraduate Sample Examination 20XX Trimester X Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. PART 1 - AUDIT THEORY 40 Marks QUESTION 1: 20 Marks (10 @ 2 Marks each question). You are required to select and circle (that is circle A, B C or D) the one best answer. 1. Who is the responsible party for the adequacy of the disclosure in the financial report and accompanying footnotes? A. Auditor in charge of fieldwork B. The entity's board of directors C. The auditor who signs the auditor's report D. The Australian Securities and Investments Commission 2. Independent auditors are referred to as 'independent' because: A. they are not employees of the entity being audited B. their offices are not at the entity's place of business. C. they report to users outside of the audited entity. D. they are paid by parties outside of the audited entity. 3. The highest level of assurance is provided by: A. Agreed-upon procedures B. Review C. Audit D. Compiling financial reports 4. Which of the following bodies is able to impose penalties on auditors who have failed to carry out their duties properly? A. Australian Securities Exchange B. Companies Auditors and Liquidators Disciplinary Board C. Financial Reporting Council. D. Auditing and Assurance Standards Board 5. To become a registered company auditor, a person must be: A. a fit and proper person. ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 2 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. B. a member of one of the accounting bodies. C. ordinarily resident in Australia. D. All of the given answers are correct. 6. In pursuing its quality control objectives with respect to acceptance of a client, an audit firm is not likely to: A. make enquiries of the proposed client's legal adviser B. review the personnel practices of the proposed client. C. review financial reports of the proposed client. D. make enquiries of previous auditors. 7. Which of the following statements is correct? A. Ethics is concerned with creating an environment that allows entities to make an equitable profit B. Ethics is concerned primarily with the wellbeing of your client. C. Ethics is principally an attitude of mind. D. Ethics is principally concerned with having a set of rules that must be complied with. 8. Ethics require: A. Knowledge of moral principles. B. Skill in applying moral principles. C. The development of virtues within the individual. D. All of the given answers are correct. 9. Who is responsible for the preparation of the financial report? A. Auditor B. Management C. Both Auditor and management D. None of the answers given are correct 10. Your client is a manufacturer of CD's and audiotapes. Theft has been an ongoing problem. The key audit risk to be addressed at year-end is: A. existence of inventory B. completeness of inventory C. valuation and allocation of inventory D. rights and obligations in relation to inventory Marking purposes only: ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 3 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. Number of Questions that are correct Marks per Question Marks Awarded for MCQs 2.00 QUESTION 2: 20 Marks (Please answer in the space provided below) In your own words and using examples as necessary answer the questions given below: (5 Marks) A. What is meant by \"audit risk\"? (5 Marks) B. Describe the different components that comprise audit risk. (5 Marks) C. Why does an auditor need to understand the client's business? (5 Marks) D. What do you understand by \"sufficient appropriate audit evidence\"? (5 Marks) Answer to Question 2: ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 4 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 5 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 6 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. PART 2 - PRACTICAL APPLICATION 60 Marks QUESTION 3: 15 Marks Sunny Skies Limited is presently being audited by your firm. The audit is for the year ended 30 June 2015. You have carried out the following audit procedures during the course of your audit: A. Vouched the supporting documentation for sales revenue and found that a number of recorded sales transactions were not genuine B. Traced a sample of inventory items to the client's inventory listing. C. Examined a sample of paid vendors' invoices to see which company the invoice was issued to D. Discovered a number of suppliers' invoices dated 29th and 30th June 2015 (when perusing the cash payments journal) that had not been included in the accounts payable account at 30 June 2015 E. Selected a sample of sales transactions and then examined evidence of the credit approval for the customer REQUIRED: For each of the above audit procedures identify the assertion(s) that is being tested, the account balance(s) that it relates to and justify your choices. Answer to Question 3: Assertion(s) Account Balance(s) Justify your choices A B ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 7 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. Assertion(s) Account Balance(s) Justify your choices C D E ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 8 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. QUESTION 4: 15 Marks (Please answer in the space provided belowext page) Peaches Limited is a company that has many branches and divisions around Australia with the main or general administrative office in Melbourne. You are part of the auditing team that is presently auditing the general purpose financial statements of the company for the year ended 31 December 2015. Leo, the senior audit manager has assigned you to the audit of the inventory and accounts receivable balances as at 31 December 2015. The working papers that he gives to you have a conclusion which states that: \"Internal controls of Peaches Limited should not be relied upon due to the many weaknesses discovered by us. The existence of both inventory and accounts receivable is at risk\". REQUIRED: A) Identify two audit procedures each that you could use to test the existence assertion for inventory and for accounts receivable; (that is two procedures for each account). (10 Marks) B) How would your answer change, if at all, if it was established that the internal controls were operating effectively? (5 Marks) Question 4 - Your Answer: ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 9 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 10 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. QUESTION 5: 15 Marks You are part of the audit team that is presently auditing the general purpose financial statements of Tensor Limited and have made the following notes on your working papers in relation to the cash receipts procedures: (A). Cheques are received by the company in two ways - directly by mail or through a sales representative who receives it from a customer. (B). Sharon Peters, the credit control clerk in the sales order department receives all cheques and restrictively crosses the cheques using the stamp \"account payee only\". (C). The customer usually attaches the remittance advice details to the cheque. (D). Sharon Peters uses the terminal to enter the details of the cheque into the system and ages the receipt by looking at the details provided by the customer in the remittance advice. (E). After processing (inputting) all the cheques Sharon Peters prints the daily cash receipts report. (F). The cash receipts report details all the cheques input into the system since the last report. Sharon agrees all cheques to this report. (G). Sharon then prepares a bank deposit slip and banks the cheques in the Commonwealth Bank operations account owned by Tensor Limited. (H). The accounts receivable master file is updated, daily with the cash receipts data. REQUIRED: Identify 3 key controls relating to the cash receipts cycle and determine an appropriate test of controls you would carry out for each control. (15 Marks) ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 11 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. Answer to Question 5: Key controls Tests of controls 1 2 3 ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 12 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. QUESTION 6: 15 Marks (2 Parts @ 7.50 Marks each) PART A Santa Ltd, a public company, has just prepared general purpose financial statements for the year ended 31 December 2015 and has appointed you as the auditor of the company. However the accounting department was heavily understaffed and as a result of this the transactions were not entered promptly and reconciliations were not performed. Therefore Santa Ltd did not keep appropriate books and records, and the audit has been extremely difficult this year. In an attempt to sort out the problems, temporary accounting staff was employed from a recruitment agency but they were unable to reconcile even the bank account at the year end. After carrying out the audit procedures you are not satisfied that all transactions that occurred during the year are reflected in the financial report. REQUIRED: Assuming the matter remains unresolved, identify and explain the audit opinion that should be issued for Santa Ltd for the year ended 31 December 2015 Question 6 Part A Santa Ltd - Your Answer: (7.50 marks) Type of Auditor's Report ACC 302 Auditing and Assurance Reasons Trimester X, 20XX - Sample Exam Page 13 of 14 Please note that the objective of this sample exam paper is for you to accustom yourself with the format and style of questions that may be examined in the final (and supplementary, if applicable) exams. This may help you with the timing of your answers. Some of the topics covered here may be examined in the final and/or supplementary exam and some may not. All topics are potentially examinable unless otherwise indicated in the subject outline. If you only learn the material in this paper, it is likely you will NOT be well prepared for the exam. You are expected to study and learn all the topics/chapters/materials covered in this subject as noted in the subject outline and revision guidelines. Please note that this is not the final exam paper, but merely a tool to assist you in your revision process. QUESTION 6: PART B As the auditor of Clause Ltd, a public company, you have identified a material misstatement in the property, plant and equipment account balance as at 31 December 2015. The depreciation rates for property, plant and equipment used by Clause Ltd have not changed for the past five years even though there have been recent technologically changes that have convinced you that the useful life and the residual value of a number of assets need to be adjusted downwards. Clause Ltd's directors argue that changing it will conflict with consistency. REQUIRED: Assuming the matter remains unresolved, identify and explain the audit opinion that should be issued for Clause Ltd for the year ended 31 December 2015 Question 6 Part B Clause Ltd - Your Answer: (7.50 Marks) Type of Auditor's Report Reasons ~~~ The End of the Exam ~~~ ACC 302 Auditing and Assurance Trimester X, 20XX - Sample Exam Page 14 of 14