University of KwaZulu-Natal School of Accounting, Economics and Finance Test 1: August 2022 UNIVERSITY OF KWAZULU-NATAL Subject, Course and Codes: ACCT322 - Auditing 3B Duration: 60 minutes Total marks: 40 Internal examiners: Staff from the School of Accounting, Economics and Finance Instructions to candidates . This paper consists of one question (set out on pages 2 to 6 - including the required page - the required is set out on page 6). · You have been issued with ONE (1) answer book. . Fill in all the following details, as required, on the front of each answer book: · Student name (first name followed by surname, for example, Wendy Smith) · Seat number · Student number · Date · Question number · Number of answer books handed in for each question (for example, Question 1: two books) · A total number of answer books handed in for this session (for example, this examination: Two books). · Use only blue or black ink. Do not write in pencil; pencil-written work will not be marked. . On completion, insert all answer books in numerical order under cover of the answer book for Question 1. . If you submit a blank (or empty) answer book, you are required to write on its cover: Blank book. . In terms of the open book policy, you are allowed to take in the SAICA Auditing Standards into the venue. However, the book must not contain any written notes or loose pages. · Allocated marks and time: Question Marks 1 40 Minutes 60 Total 40 60 . Please note that you have 15 minutes of reading time during which you are not allowed to commence writing
2022 Auditing 3B - Test 1 Question 1 40 marks (60 minutes) BACKGROUND You are the audit partner on the SIVE SYSTEMS (Pty) Ltd's audit, and this is your second year on the job. For numerous years, you have been the partner of Hlengiwe Ndlela Auditors (Pty) Ltd "HN Audit". Your organisation has three major offices in South Africa: Johannesburg, Durban, and Cape Town. HN Audit owns 70% of the Advisory and IT subsidiary, HN Advisory and IT (Pty) Ltd (HNAI). Ms. Makaziwe Maphimpi is a majority shareholder in the audit company and is a founding member of HN Audit. HN Audit has four directors who are also HN Audit shareholders, and the same directors are HN Advisory and IT shareholders. HN ADVISORY AND IT HNAI is a company with 120 000 authorised shares and 115 000 issued shares. The shareholders own the authority and classification of these shares. The following are the members of the HNAI governing body: Name Director role at HNAI and HN Audit Mr. Mpilo Khawula CA(SA) RA Chairperson director* independent non-executive Ms. Princess Pillay CA (SA) RA Chief Executive Officer(CEO) *+ Ms. Fathima Bibi CA (SA) RA Chief Financial Officer(CFO)*+ Ms. Makaziwe Maphimpi CA (SA) RA Partner - Audit*+ Ms. Butterfly Good CA (SA) Partner - Tax Ms. Nicole Silverman ACCA CIA Partner - Advisory &