2AUD301 & 2AUT301 Auditing 3A First Semester 2021 Re- Exam CRES 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 EXAMINATION -FIRST SEMESTER 2021 2AU301 / 2AUD301 - AUDITING 3A DURATION: 3 HOURS FULL MARKS: 120 Internal examiner: Mr C. Mkhabela CA (SA) Internal moderator: Mr. I.N.T. Mthembu CA (SA) External moderator: Ms Y. Katekwe CA (SA) (University of Venda) INSTRUCTIONS TO STUDENTS; 1. This paper consists of three question (set out on pages 2 to 9 excluding this cover page). Ensure that your paper is complete. 2. Clearly separate the different sections of your answer and start every new (required) question on a new page of your script. 3. Your exam script should contain your name, surname and student number at the top of each page. 4. Ensure that before you submit your script on Moodle it is in a clearly readable format. 5. Use only blue or black ink. Do not write in pencil; pencil-written work will not be marked. 6. Working neatly and logically works to your advantage. Additionally, marks are 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. 8. Read the REQUIRED section properly, more than once and again while answering the question to ensure you provide an adequate and direct response. 9. This is an open book assessment and reference to the SAICA Student Handbook is allowed as per the SAICA open book policy. 10. By downloading this exam paper and actually uploading your attempt you agree to the University of Zululand's online assessment policies. pg. 1 -
2AUD301 & 2AUT301 Auditing 3A First Semester 2021 Re- Exam [40 Marks] Question 1 Upon qualification as a chartered accountant in December 2020, you were appointed as a corporate financial manager (FM) at Uni-lever Limited ("Uni-lever"). The Johannesburg Stock Exchange listed company has over 3 500 full-time employees across two corporate offices (Durban and Johannesburg) and seven manufacturing locations in the country where various beauty, care and food product brands are manufactured. For three (3) years in a row, the company has experienced notable growth in revenues. Financial statements preparation You work from the Durban office and are responsible for a number of accounting and taxation reporting duties. On commencing employment, you were well aware of the upcoming 28 February 2021 financial year-end (FY2021), and you therefore had to start working on the financial statements preparation almost immediately after your commencement date in January. The Chief Financial Officer (CFO) had advised you that the previous financial manager decided to leave the company for "greener pastures". You have since discovered from your fellow employees that the qualified Chartered Accountant left the company abruptly (suddenly and unexpectedly) in December. The CFO (Mr Mtshali) does not belong to any accounting professional body, but has been involved in finance and reporting for over 25 years. While