Certificate in Accounting and Finance Stage MOCK Examinations

The Professionals’ Academy of Commerce

__ February 2016
3 hours – 100 marks
Additional reading time – 15 minutes

Audit and Assurance

Reasons for inclusion of the following questions:

Q.1 Terms of engagement is an oft-examined topic in the form of a rote answer, hence, it yields
easy marks in the range of 5 to 7.

Q.2 Ethics is the most consistently tested topic and its marks have increased from 10 to 14
recently. Compared with other scenario based questions, it is rather easy to score in.

Q.3 Companies Ordinance 1984 audit related matters are also an examiner favorite usually tested
for 6 to 8 marks and have not been tested in the immediately past attempt, hence, remain
important.

Q.4 Identification of audit risks is a scenario based question gaining popularity with the
examiner. Although it has been tested in the immediately past attempt and the probability of
being tested again remains low but it is a crucial topic for students when they apply their CAF
level knowledge to practical audit scenarios during their articleship.

Q.5

(a) Substantive procedures have not been tested recently. Moreover, this is a rather tricky
question included because it is a crucial topic for students when they apply their CAF level
knowledge to practical audit scenarios during their articleship.

(b) Audit opinion was recently tested combined with other topics taught in the syllabus for 14
marks, hence, less emphasis has been placed on this topic.
Q.6 Analytical procedures have not been tested recently and this is a fairly easy question
included to encourage students to not give up easily in the face of a seemingly tough question.

Q.7 The examiner has made it a habit during the past two attempts to ask short form questions to
test the entire syllabus, hence, a similar format question has been designed here forth.

(a)Written representations – Low important topic.

(b)Audit evidence – Low importance topic.

(c)Fraud and error – Important.

(d)Sampling – Gaining popularity.

(e)Reliance on the work of expert - Gaining popularity.

(f) Related party – Usually tested in spring attempt.

(g) IT controls - Gaining popularity.

Q.8

(a) Test of controls rote questions are an examiner favorite.

(b) Flow charts have not been tested for a while and the recent examiner trend to test IT concepts
is the reason for this question.

(c) Preventive, detective and corrective controls are a rather scoring area and has become popular
with the examiner recently.

Q.9 External confirmations and related parties is tested both in spring and autumn but in spring
attempt, they are usually tested for twice the number of marks as in autumn. This question has
been included so that students revise this topic well.
 Trend Analysis of the previous four attempts

Topics A15 S15 A14 S14 Analysis

Mark Mark Mark Mark Marks Marks
s s s s T P
E Professional ethics 13 12 14 9
48 12%
6 Legal consideration 8 8 7
23 6%
10 Audit opinion and form of audit 14 19
report 33 8%
4 Consideration of related parties 4 7 2 9
22 6%
1 External confirmations (ISA 505) 4 12 2 13
31 8%
7 Tests of controls (ISA 330) 11 10 7
28 7%
7 Ethics 210 + Terms of Audit eng 9 4 5
18 5%
5 Auditors responsibility fraud 10 6 8
24 6%
6 Substantive procedure 2 18 7
27 7%
2 Assessment of audit risks 9 12
21 5%
IT controls 8 4
12 3%
5 Audit sampling (ISA 530) 7 3 1
11 3%
1 Planning & Underst 3 16
19 5%
5 Using the work of 2 9 6
17 4%
6 Preventive, detective and corr 8 6
14 4%
2 Subsequent events (ISA 560) 7 2
9 2%
6 Engagement to review 2 2
4 1%
1 Flowcharts 4 9
13 3%
Written representations 3 5
8 2%
9 Documentation (ISA 230) 7
7 2%
3 Audit materiality (ISA 320) 5
5 1%
0 Introduction to basics
0 0%
8 Analytical procedures (ISA 520) 4
4 1%
4 Audit evidence (ISA 500) 2
2 1%
11 Audit completion
0 0%
100 100 100 100 400