AUI3702 EXAM PACK

QUESTION 1 MCQ 1-D 2-A 3-A 4-C 5-D 6-D 7-D 8-B 9-C 10-B QUESTION 2 2.1. Weaknesses Controls Overtime hours are not approved by section head of supervisors and employees work overtime as the feel. Having to work overtime should be approved by the section head or the supervisors The security personal who mans the entrance is only in place during busy Security personnel should be present at all times to ensure that employees clocks AUI3702_JUN 2014_JUNE 2018-EXAM PACK. AUI3702 EXAM PACK periods. only once with the clock card There is no segregation of duties as Apple Smith now almost everything in the department There should be segregation on duties in respect to duties carried out by apple smith probably a senior personnel who reviews the duties carried out by him The clock cards are not made in terms of authorized employee list The personnel department should prepare the clock cards in terms of the authorized employee list No segregation of duties Apple smith should not perform all the duties, there should be segregation of duties in respect to duties performed by apple smith There are no independent reconciliations and reviews on the work performed by apple smith and there are only random checks Independent reviews and checks on the work performed by apple smith should be carried out regularly and not on random basis Granny tree cashes the cheque, prepares the pay packets and updates the accounting records Segregation of duties is more essential at this level as fraud can be facilitated by having one person performing all functions Employees are not required to present their identification when collecting their payment Employees are required to present their identification when collecting their payment The two senior personnel who have conducted the payment have not reconciled the unclaimed wages with the register The two senior personnel should have reconcile the unclaimed wages with the register Question 3 3.1 Explain step by step how you would select a sample Establish the objectives of the sampling plan -define the extent and composition of the population -select a sampling method -determine the sample size to be taken -evaluate and report results 3.2. Calculate sample size Sample size = total value of population/J Factor = 500 000/10869,6 = 46.10 Calculation of J Factor = precision Reliability factor =(0,05 x 500 000)/2.3 =10869,6 Sample interval = total value of PP/Sample size 500 000/46,10 =10845,99 3.5. Ratio analysis will be used by an auditor when performing analytical procedures. During the performance stage an auditor when auditing transactions and account balances, for different classes of transactions NB Analytical procedures are classified as substantive procedures. 3.6. Calculate the following ratios