Question 1 SECTION A:

[20 MARKS] [10 marks]

List A below consists of the first parts of 10 sentences. List B below consists of the second part of each sentence. When the parts (A and B) are combined, a complete and correct statement is made. You are required to: Match the sentences from list A with their correct counterparts in List B. Only write down the appropriate numbers from each list. Each number can only be used once. List A:

A1	The essential characteristic common to all types of assurance engagement is
A2	The International Framework for Assurance Engagements defines an assurance engagement as one in which a practitioner expresses a conclusion designed to
A3	A professional accountant in public practice must be registered with
A4	All Namibian companies
A5	One of the auditing postulates is that the application of a recognized accounting framework in the preparation of the financial statements will
A6	The audits of provincial departments are usually undertaken by
A7	An audit does not certify that the financial statements are correct, but it does provide
A8	Another of the auditing postulates states that the status of the independent auditor in society
A9	A review of financial statements will provide
A10	The assertions contained in the financial statements can be described as the

List B:

B1	the PAAB in Namibia or IRBA in South Africa.
B2	the office of the Auditor general.
B3	result in fair presentation.
B4	the independence of the auditor from the entity being audited.
B5	imposes an obligation on the auditor to place service before personal interest.
B6	representations of the directors / management to the shareholders.
B7	enhance the degree of confidence of the intended user.
B8	limited assurance as to the fair presentation of the financial statements.
B9	must be audited.
B10	reasonable assurance as to the fair presentation of the financial statements.

SECTION B: [10 marks] Each of the following statements MAY or MAY NOT be regarded as a postulate of auditing: 1. The auditor must adopt an attitude of professional skepticism. 2. The professional status of the independent auditor imposes commensurate professional obligations on the auditor. 3. When conducting an audit of annual financial statements, the auditor must plan and carry out procedures specifically designed to detect fraud. 4. Internal controls reduce the probability of errors and irregularities. 5. Professional competence outweighs independence when conducting an audit. 6. Fair presentation of the financial statements must be evaluated in terms of sound principles of corporate governance. 7. An auditor must act exclusively as auditor in order to be able to offer an independent and objective opinion on the fair presentation of financial information. 8. With regard to achieving fair presentation of the financial statements, there is no conflict of interest between the auditor and the companys management. You are required to:

(a)	Explain the term postulate in the context of auditing.	(2)
(b)	Identify which of the above statements may be regarded as postulates of auditing and which not (8)