Case Study

PROGRAMME Bachelor of Commerce in Accounting

MODULE Introduction to Auditing
YEAR Two (2)
INTAKE January 2022 Semester 2
TOTAL MARKS 30

Required: Based on the information below, answer the following questions:

CASE STUDY [30 Marks]

“The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to obtain
sufficient appropriate evidence to be able to draw reasonable conclusions on which to base an audit opinion. It is
obvious that in order for an auditor to gather the evidence that they require, a number of procedures will need to be
carried out. The nature, timing and extent of the evidence that is collected by an auditor also plays an important factor
in the deciding on the type and manner of evidence that needs to be collected”.
Answer ALL the questions in this section.
Question 1

1.1 Will accounting records which are accurate, complete and maintained in a proper manner be (3 marks)
considered as evidence which is sufficient for the auditor to fulfil the duties and functions assigned
to him?

1.2 Provide a brief description of the relationship which exists between audit evidence and audit risk. (4 marks)

1.3 What are the factors upon which reliable and relevant evidence depends on? (4 marks)

1.4 You are an audit student who has been invited to attend an interview for a graduate training (14 marks)
program in auditing. At the interview you are asked questions relevant to audit procedures. You are
required to briefly describe the seven types of audit procedures which can be used to obtain audit
evidence.

1.5 When collecting audit evidence the nature, timing and extent of the evidence play a critical role. (3 marks)
What do these terms refer to in relation to evidence that is collected?

1.6 What does the term risk assessment procedures refer to in the context of auditing? (2 marks)