AUDITING 3B- Test 2 2021 CLIGENTIA CRESCO UNIVERSITY OF ZULULAND University of Zululand, Private Bag X1001, KwaDlangezwa, 3886 W: www.unizulu.ac.za FACULTY OF COMMERCE, ADMINISTRATION & LAW DEPARTMENT OF ACCOUNTING AND AUDITING 2AUD302 & 2AUT302- Auditing 3B TEST 1 -29 September 2021 DURATION - READING AND WRITING: 75 MINUTES FULL MARKS: 50 Internal Examiner: Mr C Mkhabela CA(SA) Internal Moderator: Mr INT Mthembu CA(SA) INSTRUCTIONS TO STUDENTS: 1. This paper consists of Two questions (set out on pages 2 to 4) excluding this cover page. Ensure that your paper is complete. 2. Where more than one answer book has been used, clearly identify the sections answered on the top of each page. 3. Fill in all the details your details to ensure that the script clearly depicts your identity. 4. Use only blue or black ink. Do not write in pencil; pencil-written work will not be marked. 5. Typed SCRIPT will not be marked. 6. Work NEATLY and LOGICALLY. Marks will be awarded for pervasive skills (communication, language, writing style, clarity of expression, presentation, logical and well-constructed answers,). 7. In answering the questions, record any assumptions you may consider necessary. No questions will be answered by invigilators during the exam. 8. Clearly separate the different sections of your answer and where applicable start every new (required) question on a new page of your answer book. 9. Read the REQUIRED section properly, more than once and again while answering the question to ensure you provide a direct adequate response. By writing this online-based assessment you agree to the University rules against plagiarism and any other form of dishonesty. Page 1 of 4
AUDITING 3B- Test 2 2021 Question 1 [30 Marks: 45 Minutes] Your firm has been recently appointed as the auditors of The Bold Type (Pty) Ltd, ("TBT"), a company which specialises in the manufacturing of the body supplements used for health, fitness and nutrition purposes. One of the products the company produces is called Nutritec Protein. The Bold Type (Pty) Ltd's year end is 30 September and you are the audit manager assigned to the 2021 year-end audit. The company's manufacturing site is situated in KwaDukuza (Stanger) with the head office being in Bellair (Durban South Africa). The audit senior involved in the audit has provided you with the payroll system of TBT detailing the procedures: The company has 250 hourly paid staff spread over 2 production section which are manufacturing and packaging. Each section has its own supervisor and they both report to Jacqueline Carlyle, the factory manager. The wage week runs from Thursday morning to the following Wednesday afternoon. The following are key salaried employees involved in the payroll cycle: Name Jacqueline Carlyle Kat Edison Factory Administration Clerk Jane Sloan Payroll Administration Clerk Sutton Brady Title Factory Manager Payroll Manager The 2 sections are located in a single factory building and to enter or leave the building, employees must pass a clock card through a clocking machine to record their time of entry or exit and this system