RWENZORI INTERNATIONALUNIVERSITY

Together We Will

FACULTY OF BUSINESS
DEPARTMENT MANAGEMENT
MID SEMESTER TWO (II) ACADEMIC YEAR 2024

COURSE CODE: CAF 1301

COURSE NAME: ELEMENTS OF AUDITING TEST

TOTAL MARKS: 30

TIME: 9:00AM- 10:30PM

DURATION: 1HOUR AND 30 MINUTES
DATE: WEDNESDAY 20, MARCH 2024
NUMBER OF STUDENTS:04

NUMBER OF COPIES: 06

INSTRUCTOR: BWAMBALE SALVERI

INSTRUCTIONS:
1. Answer ALL questions which are marked out of 30
2. All the questions carry equal marks
3. Write clearly and legibly.
4. Mobile phones should be switched off all times during the examination.
5. Clearly indicate the questions answered on the answer sheet in the column of questions.
Question One
The ISA 700 requires an auditor to express his/her opinion in a report on whether the financial
statements give a true or fair view.
(a) Briefly explain the meaning of true or fair view as used in auditing.
(b) Explain the difference between a qualified report and the unqualified report.
(c) Outline 8 components of the audit report.

Question Two
As a practicing auditor, you have been delegated on behalf of Muzana accountants Ltd, Kampala
to carried out an auditing on management and finance of Rwenzori international university, P.O.
Box 80, Kasese- Uganda.
(a) Define the term management auditing and outline 4 advantages of this audit.
(b) Draft an audit report to be given to the directors of PPP business enterprise.

Question Three
According to ISA 600, requires all limited companies to carry out an examination and
verification of all company’s books of account. This is done by an independent person called an
auditor.
(a) Briefly explain the qualities of a good auditor.
(b) What are the advantages of carrying out an auditing?
(c) Under what circumstances may an Auditor be removed from an office?

END