Name: yfjfjtjtrj Student ID No.

: 1r567568
Tutorial Group:
Subject Code & Title: ABFA3114 Principles of Auditing Programme/Year of Study: DAC, 2020/2021

KUALA LUMPUR
ANSWER BOOKLET

INSTRUCTIONS TO CANDIDATES

1. You are required to type your answers for ALL the questions using the font type of Times New
Roman, the font size of 12 and single line spacing.
2. Click ‘File’ to select ‘Make a copy’ in this Google Doc Answer Booklet.
3. You are required to replace ‘Copy of...’ under ‘Name’ with your “Full Name_Student ID_Group
No,” in the popped-up box. Do not check/tick any box. Then click ‘OK’.
4. Then, you can start typing your answers in the renamed Google Doc Answer Booklet. You can
work on your renamed Google Docs Answer Booklet in offline mode by ticking ‘Offline’ under
‘Settings’ in Google Drive and click ‘Install’ in the popped-up box. In the Chrome Web Store,
click ‘Add to Chrome’ to install Google Docs Offline into your Google Chrome browser.
5. Once you have finished answering, you are required to upload the ONE (1) copy of your
renamed Google Doc Answer Booklet to the Google Classroom under ‘Your Work’ as your
final answer.
6. Click on the Google Form attached in the Assignment section to register yourself.
7. At the ‘Answer’ section, click ‘Add File’ to upload the same copy of your renamed Google Doc
Answer Booklet and click ‘Submit’.
8. Submission in Google Form and Google Classroom will be closed at 18 July 2020, 6.00 PM
sharp. Any late submission will not be accepted or marked.

QUESTION FOR EXAMINER’S USE ONLY

NUMBER
MARKS
Allocated marks Mark received
Section A 10 9

1
Name: yfjfjtjtrj Student ID No.: 1r567568
Tutorial Group:
Subject Code & Title: ABFA3114 Principles of Auditing Programme/Year of Study: DAC, 2020/2021

Section B
Question 1 10 10
Question 2 30 30
TOTAL 50 49
OVER 100% (x) 2 98

This column
is for
Type answers on this side of the page only
marker’s use
only
SECTION A (10%)

Question Please type your For marker’s use only 9

answers here
Question 1 C
Question 2 D
Question 3 A
Question 4 A
Question 5 A 0
Question 6 C
Question 7 D
Question 8 B
Question 9 B
Question 10 A

SECTION A - TOTAL MARKS (10%)

2
Name: yfjfjtjtrj Student ID No.: 1r567568
Tutorial Group:
Subject Code & Title: ABFA3114 Principles of Auditing Programme/Year of Study: DAC, 2020/2021

SECTION B - QUESTION 1 (10%)

10
SECTION B - QUESTION 1 - TOTAL MARKS (10%)
SECTION B - QUESTION 2 (30%)

Q2: 30 marks
[Please type your answers here]

The first potential ethical threat is self-interest threat. It occurs when auditor benefit
from a financial or other interest in an audit client. In this case, because of Peter’s
outstanding work, Peter’s youngest sister, Jane has joined GF in January 2020 as a chief
operating officer. She invited the whole audit team to visit the premises, and thereafter,
lunch at an expensive restaurant. As a result, the objectivity and independence of the
audit firm may be impaired. The safeguards that could be applied to reduce the threats to
an acceptable level is safeguarded by profession. In this case, Peter should reject the
invitation of his youngest sister to have an expensive lunch.
The second potential ethical threat is familiarity threat. It occurs when by virtual of a
close relationship with an audit client, its directors, officers or employees. In this case, 7.5
Peter has been serving as the audit manager of GF for the past 10 years. As a result, the
objectivity and independence of the audit firm may be impaired. The safeguards that
could be applied to reduce the threats to an acceptable level is safeguarded by
profession. In this case, Peter should rotate off for two years after serving the same client
for seven years.
The third potential ethical threat is self-review threat. It occurs when an auditor put
himself in a position of reviewing the subject that previously responsible. In this case,
Peter provides the services including audit, taxation and management consultancy 7.5
services. As a result, the objectivity and independence of the audit firm may be
impaired. The safeguards that could be applied to reduce the threats to an acceptable
level is safeguarded by profession. In this case, Peter should reject to provide non-
auditing services.

3
Name: yfjfjtjtrj Student ID No.: 1r567568
Tutorial Group:
Subject Code & Title: ABFA3114 Principles of Auditing Programme/Year of Study: DAC, 2020/2021

7.5

7.5

SECTION B - QUESTION 2 - TOTAL MARKS (30%)