CAUD202/CAUT202 FINAL EXAM 2018 UNIVERSITY OF ZULULAND University of Zululand, Private Bag X1001, KwaDlangezwa, 3886 W: www.unizulu.ac.za FACULTY OF COMMERCE, LAW AND ADMINISTRATION DEPARTMENT OF ACCOUNTING AND AUDITING EXAMINATION - SECOND SEMESTER 2018 CAUD202 - CAUT202 - DURATION: 3 HOURS FULL MARKS: 120 · This paper consists of five questions (set out on pages 2 to 8): Question 1 36 Question 2 30 Question 3 20 30 Question 4 20 30 Question 5 14 21 Marks Minutes 54 45 TOTAL 120 180 · Use only blue or black ink. Do not write in pencil; pencil-written work will not be marked. · Do not use tippex. · Answer all questions. · Start each question on a new sheet. 1
CAUD202/CAUT202 FINAL EXAM 2018 [36 Marks, 54 Minutes] Question 1 You have recently been appointed as the internal auditor of Unizulu Bookshop (Pty) Ltd ("Unizulu Bookshop"). Unizulu Bookshop purchases and sells books, stationery, laptops, tablets and other goods students use for education purposes at the university. Purchases by Unizulu Bookshop You are currently auditing the purchases and payments cycle of the bookshop and have noted the following while performing your work. . When any one of the sales representatives at the bookshop realises that a stock item is out of stock, they ask the procurement clerk, Mamello, to contact the suppliers, who are often the publishers and/or printers of the textbook. In all other instances, Mamello keeps a list of reliable suppliers that she has had good experiences with in the past, depending on what the bookshop requires. Where she experiences bad service from a supplier, she immediately blacklists the supplier for future business and it is unlikely that she will use that supplier again. · Order requirements are normally urgent as students need to be able to keep up with studies. So to avoid delays once notified about short stock, Mamello proceeds to order the item(s) from suppliers in her "suppliers' book" whom she instructs to deliver immediately. Suppliers understand how Mamello and the Unizulu Bookshop work. . When the supplier arrives at the receiving bay adjacent to the storeroom, the inventory clerk, Zola, immediately checks the items received from the supplier before taking them into the storeroom, and then signs and keeps the delivery note. Where there are defects in the items supplied, Zola notifies the inventory manager (Mmeli) about the defects or shortages, and he liaises directly with the supplier. Once inventory is packed in the storeroom, Mmeli prepares a goods received note and sends it to the accounting department for recording. . Ntombi, the accounting intern, files the orders, delivery note and goods received notes in a temporary file until the suppliers' invoices are received. Once invoices are received, the relevant documents are extracted from the temporary file and attached to the invoice. Invoices are checked and then filed alphabetically. Ntombi enters the inventory quantities received into the JBEdward computerised inventory system. At the end of each month, the financial accountant, Siyanda, checks the purchases journal for proper