TUESDAY: 22 August 2023. Afternoon Paper. Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.


1. Explain the meaning of the following terms in relation to auditing in a computerised environment:

Audit trail. (2 marks)

Auditing around the computer. (2 marks)

Auditing through the computer. (2 marks)

2. Define the following terms as used in Computer Assisted Audit Techniques (CAATs):

Test data. (2 marks)

Audit software. (2 marks)

3. Describe SIX internal control procedures for a sales unit in an organisation. (6 marks)

4. Explain FOUR ways in which an auditor’s independence might be threatened. (4 marks)

(Total: 20 marks)



1. List SIX contents of an audit note book. (6 marks)

2. Outline SIX benefits that would accrue to the auditor for using computerised accounting systems. (6 marks)

3. Evaluate FOUR benefits that might accrue to the Internal Audit Department of an organisation for working closely with the external auditors. (8 marks)

(Total: 20 marks)



1. Your audit team has decided to adopt statistical sampling in analysing audit data for a construction company.

Summarise THREE advantages of using statistical sampling technique in auditing. (6 marks)

2. Highlight FOUR factors that might cast doubt on the going concern of a company. (4 marks)

3. Analyse THREE ways in which an auditor might minimise risk during an audit. (6 marks)

4. Explain TWO reasons why an auditor is required to attend a client’s annual stock take. (4 marks)

(Total: 20 marks)



1. In relation to components of auditor’s report, describe THREE responsibilities of the directors of a company in relation to the accounting function. (6 marks)

2. Explain THREE benefits of undertaking an interim audit to the auditor. (6 marks)

3. Highlight FOUR challenges that an auditor might encounter in the development and implementation of audit plans. (4 marks)

4. Enumerate FOUR reasons why debtor circularisation is an important source of audit evidence. (4 marks)

(Total: 20 marks)



1. Explain THREE reasons why the concept of professional independence of the auditor is important. (6 marks)

2. Discuss FOUR differences between “auditing” and “accounting”. (8 marks)

3. You are an audit trainee in XYZ Ltd.

Explain SIX control measures that you would recommend to the management of the company to adopt so as to minimise incidences of fraud. (6 marks)

(Total: 20 marks)

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