BHEA.

BPA/01-00

CONFIDENTIAL JAN2024/SETB/PAT3023

TEST

COURSE : PRINCIPLES OF AUDITING

COURSE CODE : PAT3023

DURATION : 2 HOURS

INSTRUCTIONS TO CANDIDATES :

1. This question paper consists of TWO (2) questions.

2. Answer ALL questions.

3. Please check to make sure that this examination pack consists the Question Paper.

4. The answer must be in handwriting. Please write your answer using a ball-point pen on a
foolscap paper. The answer need to be submitted to the respective lecturer either using:

i. Upload the PDF file via Google Classroom OR,

ii. Upload the PDF file via email OR,
iii. Upload the PDF file via WhatsApp.

5. Plagiarism, copying and cheating will not be tolerated where no marks will be given and
disciplinary actions can be taken.

MYKAD NO :
ID. NO. :
LECTURER :
SECTION :

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

The question paper consists of 4 printed pages

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CONFIDENTIAL JAN2024/SETB/PAT3023
QUESTION 1

a. Explain the following terms:

i. Accumulation and evaluation of evidence. (2 points)
ii. Competent and independent person. (2 points)

b. RMI & Associates (Chartered Accountants) is an established auditing firm in Malaysia. The
firm offers a wide range of professional services such as accounting, audit, tax, advisory and
consultancy. Kerala Bhd is one of the clients of RMI & Associates.

i. Interpret who is the RMI & Associates to Kerala Bhd. (3 points)

ii. Describe the reasons of the Kerala Bhd needs the auditing services from RMI &
Associates. (6 points)

iii. Clarify the power or right of RMI & Associates towards Kerala Bhd. (5 points)

iv. After the audit, RMI & Associates has traced that there was wrongdoing in Kerala
Bhd. The case has been reported to the court. In your opinion which types of auditors
may take over this case and describe your answer. (2 points)

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QUESTION 2

a. MIA has issued the revised MIA BY-Laws (On Professional Ethics, Conducts and Practices)
based on Accountants Act 1967. Distinguish these TWO (2) parts of the laws in terms of the
target group as well as their objective.

i. Part I: By-Laws on Professional Ethics. (2 points)

ii. Part II: By-Laws on Professional Conducts and Practices. (2 points)

b. The following cases are TWO (2) independent cases. Answer the questions based on the
respective cases.

CASE 1:
Portable Machine Sdn Bhd has appointed Zahin as an auditor for the business. After the
appointment letter has been sent to Zahin, he discovers that the CEO of the business is his
long-lost cousin.

Required:
Based on the accountant professional ethics, comment on this appointment. (8 points)

CASE 2:
Danish just started an audit firm, Danish & Ariff Aifa . In order to attract more clients, he has
charged quite low audit fee to the first client, Talam Sdn Bhd, a clothing manufacturer.

Required:

Based on auditing practices, your are required to comment on the above case. (8 points)

(TOTAL: 40 POINTS)

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END OF PAPER

Prepared by: Verified by: Endorsed by:

Marsita Ismail Nur Ihsan Binti Hussin

KPTM Auditing Team Course Leader Head of Discipline
(KUANTAN & KOTA BHARU) KPTM ALOR SETAR KPTM BANGI

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