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MOCK EXAMINATION – KPMG

Total questions: 20 MCQs (1 points each) and 1 Essay (30 points)
Total marks: 50 points
Time: 1 hours

SECTION A - ACCOUNTING

1. D. $180,000
I = P + Ci– D = $(72,500 + 8,000 – 2,200) = $78,300
Therefore, closing net assets = $(101,700 + 78,300) = $180,000.

2. B. $55,500
I = P + Ci– D = $(35,400 – 6,000 + 10,200) = $39,600
Therefore, opening capital = opening net assets = $(95,100 – 39,600) = $55,500.

3. B. Dr: Drawings account 800

Cr: Purchases account 800
The selling price is not relevant to this adjustment.

4. C. Debit purchases $100, credit payables $50, credit cash $50

A is incorrect as the debits and credits don’t equal each other, B is incorrect as the debits and credits
are the wrong way round and D are incorrect as the credit purchase has been ignored

5. C. Debit receivables $250, credit sales $250

You are recording the transaction in Steel Co’s books – Steel Co is the seller, so the double entry is Dr
receivables, Cr sales $250.

6. A. An asset of $71,192
The receivables allowance is deducted from trade receivables and the net figure of $71,192 ($75,943 –
$4,751) is reported in the statement of financial position.

7. B. Assets are represented by debit balances.

Assets are represented by debit balances.

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SECTION B - AUDITING

8. B. Decrease the materiality level

9. B. 1, 3 and 4
Existence, classification and presentation are all assertions related to tangible non-current assets.
Completeness and accuracy, valuation and allocation are also relevant assertions. Occurrence relates
to classes of transactions and events recorded in profit or loss.

10. B. False
Audit risk has two components is risk of material misstatement and detection risk.

11. B. Performance materiality refers to the amounts set by the auditor at higher than the materiality level
for particular classes of transactions, account balances or disclosures where the materiality level might
otherwise mean that such items are not tested.

The auditor sets performance materiality at amount which is lower than the materiality level for the
financial statements as a whole. This is so that the impact of misstatements for particular classes of
transactions, account balances or disclosures will be considered even if they are not material to the
financial statements as a whole.

12. C. There is a high turnover of staff in the finance department

A is inherent risk and B is detection risk

13. B. Inherent risk

Inherent risk is the risk that an item will be misstated due to the characteristics of that item. High levels
of income in the form of cash increase the risk that income may be misstated either in error or
deliberately. In addition there may be no other independent source to show what the income should
be. For example in this instance there would not be any formal record to support the majority of the
takings (eg invoice or receipt) collected in the buckets.

14. B. The risk assessment will enable the audit senior to produce an accurate budget for the audit
assignment
Whilst an audit firm is a commercial and profit making organisation, ISA 315 is not concerned with the
auditor's budget but rather with ensuring that the auditor has a sufficient understanding of the
business so that they can select appropriate audit procedures, in order to minimise the risk of
undetected material misstatements.

SECTION C – GENERAL KNOWLEDGE

15. A. Nguyen Thi Kim Ngan

16. C. Philippines

17. D. Tran Tuan Anh

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 SAPP Academy support@sapp.edu.vn
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8th Floor, Sinh Plaza Tower, No. 261 Pham Van Dong Str 0969 729 463
3Ard Floor, No. 374 – 374B, Vo Van Tan Str, Ward 05, Dist 03, HCM

SECTION E – IQ TEST

18. 11 lines

19. 40 socks

20. 0 - Looking at lines of numbers from the top: 9 × 8 = 72; 72 × 8 = 576; 576 × 8 = 4608

SECTION D – WRITING

Choose one of our core values and show us how you match which one of them. Use your experiences and
objectives as evidence.

Answer:

Seven core values of KPMG:

1. We lead by example
At all levels acting in a way that exemplifies what we expect of each other and our member firms‘ clients.

2. We work together
Bringing out the best in each other and creating strong and successful working relationships.

3. We respect the individual

Respecting people for who they are and for their knowledge, skills, and experience as individuals and team
members.

4. We seek the facts and provide insight

Challenging assumptions, pursuing facts, and strengthening our reputation as trusted and objective business
advisers.

5. We are open and honest in our communication

Sharing information, insight, and advice frequently and constructively and managing tough situations with
courage and candor.

6. We are committed to our communities

Acting as responsible corporate citizens and broadening our skills, experience, and perspectives through work
in our communities.

7. Above all, we act with integrity

Constantly striving to uphold the highest professional standards, provide sound advice, and rigorously maintain
our independence.

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