FACULTY OF COMMERCE,
MANAGEMENT & LAW
DISTANCE MODE ASSIGNMENT
LETTER
Old and New Curriculum
Academic Year 2024
Semester (2)
Auditing 1B
AUA3752
A MUST, TO READ THE ENTIRE
DOCUMENT
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
ACCOUNTING, ECONOMIC & MANAGEMENT
SCIENCES
1.
ASSIGNMENT ADMINISTRATION
CORE CALENDAR FOR DISTANCE AND ONLINE COURSES – 2024
SEMESTER 2
MONTH
DATES
ACTIVITIES
Schools
Creation of Moodle courses for Distance and Online mode
July
Semester 2 Lectures Commences
22 July
August
28- 30 August
2024
Compulsory Virtual Vacation School
September
09 September
10-12 September
Due date: 01st Assessment of 2nd Semester Modules Only
Grace Period for assessment submission/ completion
All Schools
FIRST ASSESSMENT: 2nd SEMESTER MODULES
School of Accounting, School of Business
Management, Governance & Economics
School of Law
MAKE-UP/ COMPENSATORY ASSESSMENT 1: 2nd SEMESTER MODULES
October
11 October 2024
Make-up assessment due date: 1st Assessment
– Only applicable if you score 1-39% in Assignment 1.
Take note that a new assessment (test or assignment) is
to be submitted.
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School of Accounting, School of Business
Management, Governance & Economics
School of Law
FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
SECOND ASSESSMENT: 2nd SEMESTER MODULES
September/
October
30 September 2024
1 to 3 October
Due date: 02nd Assessment of 2nd Semester Modules Only
Grace Period for assessment submission/ completion
School of Accounting, School of Business
Management, Governance & Economics
School of Law
MAKE-UP/ COMPENSATORY ASSESSMENT 2: 1st SEMESTER MODULES
18 October 2024
Make-up assessment due date: 2nd Assessment
– Only applicable if you score 1-39% in Assignment 2.
Take note that a new assessment (test or assignment) is
to be submitted.
Lectures end for First Semester
17 October 2024
23 October 2024
Release of CA Marks
Semester 2 First opportunity Examinations commence
11 October 2024
School of Accounting, School of Business
Management, Governance & Economics
School of Law
All Schools
For modules that will have online tests, all information shall be communicated well in advance. Kindly take note that some modules might
have 3 to 4 assessments. E.g.
2 assignments and 1 to 2 online tests. All necessary information will be shared timely.
Good luck!
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
2024 Distance Mode Assignments
[Auditing 1B]
Dear Student,
Welcome to the University of Namibia. We are confident that your studies and hard work will be rewarded with
success. We kindly advise that you obtain all the relevant information and booklets available for distance
students from your Moodle platform (including the 2023 Student Information Letter, Online Assignment
Submission Guide and other documents). These documents will provide guidance on how to approach
your studies and will guide you through your study materials as well as providing useful administrative
information in submitting assignments.
1. Study materials
Your study guide is essentially your “teacher/lecturer”. However, in addition, you are required to visit the library
to consult prescribed books and recommended readings that are indicated in the study guide as well as
browse the Internet in general. You are also responsible to purchase any prescribed textbooks required for
your respective courses/modules. Furthermore, you are strongly advised to follow the guidelines in the Online
Assignment Submission Guide available on Moodle.
2. Collaborative Learning
Unam avails all your modules through Moodle, enabling you to interact with your fellow students online through
forum discussions and chats. You can use the same platform to engage with your lecturers and tutors
regarding academic support. Please take advantage of Moodle to avoid isolation and strengthen your
interaction with colleagues, ask for help, and share/receive resources to aid your learning process. See below
how to access forum discussions on Moodle:
Figure 1: Forums in courses
3. Submission of assignments
It is very important to complete and submit a clean, clear and well-argued assignment for marking. Make sure
that you have understood the questions in order to answer them correctly. It is your responsibility to make
sure that every page of the completed assignment is correctly numbered before submitting your assignment.
As from 2017, ALL assignments are submitted through the Moodle Learning Management System. This
is an online platform where you will access all your modules and related information such as course outlines,
course notes and other learning materials that your lecturer/tutor may choose to share with you. Moodle is
accessible here: http://elearning.unam.edu.na. You should complete and submit all assignments on or before
the given due date in the assignment letter if you wish to obtain your CA marks and qualify for examinations.
UNAM always updates its assignment covers on an annual and semester basis. Please ensure that you have
used the latest assignment cover. The latest assignment cover is availed on each course on Moodle.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
A user guide is available on how to submit your assignment in each module on the Distance Education
Common Space and you can access it on the Online Support system. Pay close attention to the following key
points listed at the beginning of the guide on:
3.1 How you would know when you have successfully submitted your assignment:
that is when the submission status shows “Submitted for grading”
Figure 2: Assignment submission status
MAKE SURE THE SYSTEM GIVES YOU A CONFIRMATION OF SUBMISSION by the submission
status shown as "Submitted for grading" when done. If that status is NOT displayed when done, IT
DOES NOT COUNT AS A SUBMISSION.
3.2 Errors to avoid when submitting your assignment (committing these errors may result in
you failing to submit your assignments and therefore potentially failing your course)
a. You are submitting on the correct Module/Course
b. You have selected and uploaded the correct Assignment document from your
computer
c. You are submitting the correct Assignment number for the respective activity (i.e.
Assignment 1, 2, etc.)
3.3 How to check the assessment feedback when your assignment has been graded.
4. Due Dates
All assignment due dates for 2022 are published on second page of this assignment letter. With the shift from
manual to online assignment submission since 2017, due dates are automated and non-negotiable. This
means that you would be required to submit your assignments ON or BEFORE the due date set on your
assignment (before 11h55 PM). After the date has passed (i.e. 12h00AM of the next day) the assignment
submission will be disabled, and you would no longer be able to submit your assignment. Please note
that assignment submissions will be open long before the due dates.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
Please note that your assignment due dates are on page 2 of this Tutorial Letter. Use this assignment due
dates to set up your calendar tool on your mobile phone or computer to set reminders for yourself and manage
your time. Another way to keep pace with due dates, is by regularly visiting your Timeline of each of your
courses on Moodle on the Course Overview. Also download the Moodle mobile app to access Moodle on your
mobile phone or tablet and have access to notifications about due dates at your fingertips from Google Play
Store for Android or Apple App Store for IOS.
5. Submission of Assignments
Due to challenges with Internet connectivity and speed, large files may take too long to upload, which is a big
risk if you wait until the last minute to submit your assignments. You are therefore strongly advised NOT to
wait until the final hours of the due dates to submit your assignments to avoid disappointments. You are also
advised to ensure that you are in an area with good Internet connectivity when submitting your assignments.
Timely submission of all assignments on or before the given due date is crucial for the timely grading and
processing of your CA marks and determining admission to exams.
Take note that assignments should never be submitted directly by email or hard copy to individual
tutors or any other staff members of the University of Namibia.
6.
Medical and death are the only reasons accepted for the late submission of assignments. Late
submission of assignments will only be approved 7 days (including public holidays and weekends) after
the due date of an assignment. Valid documentary proof must be attached as part of the assignment before
any late submission will be considered. Late submission without valid documentary proof attached to the
assignment will be returned unmarked and may not be resubmitted for marking. Travelling and attendance
of workshops, job related activities and conferences may not be used as an excuse for the late submission
of assignments. All late submission request must be forwarded to the Student support coordinator for
approval.
7. Academic Support
One every Moodle course there is an embedded Academic Support section with materials to assist you with
your writing process (see Figure 3 below). Go through the videos in order to enhance your writing process
and submit better quality assignments.
Figure 3: Academic Support tutorials
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
8. Grace Period
A grace period refers to three (3) additional days added after your assignment due date.
The purpose of this grace period is to provide each student with time to verify and or to
make amendments to assignments already submitted. These changes may include
correcting errors like submitting a file to a wrong module or on a wrong assignment;
submitting a wrong file; losing internet connectivity, etc. An example would be that a student
attempting to submit an assignment and they lose internet connection would still be able to
try again the day after at a different place or when the connection has been restored.
9. Plagiarism Control
It has been observed that some students copy information from the Internet and paste into
their assignments without acknowledging the sources of the information. This is called
plagiarism. A copy of the Policy on Academic Integrity has been provided to you on every
course on Moodle. Please note that plagiarism which includes copying and pasting
information from the Internet would not be tolerated, shall result in your assignments
declared null and void and graded as a “0”. All assignments submitted through Moodle
would be checked for plagiarism using plagiarism detection software. You are therefore
strongly urged to acknowledge EVERY source that you use for your assignment by using
the appropriate citations and references following the referencing style prescribed by your
lecturers (APA Referencing guides are available freely online). Find one here:
http://www.uofa.edu/docs/apa-documentation.pdf
Any assignment found with high similarity scores or with evidence of clear attempts to cheat
such as submitting an assignment that is not your own would result in a zero (0) grade.
10. Vacation schools
Attending vacation school is COMPULSORY and the vacation school timetable will be made available
through the UNAM Moodle
11. My UNAM Portal and Moodle
We recommend that you regularly (at least twice a week) access your “My UNAM Portal”
(http://my.unam.edu.na) for your registration status and information, and Moodle
(https://elearning.unam.edu.na ) for your learning and assessment information.
Also visit the Distance Education Common Space on Moodle where you can find all
necessary information and user manuals related to your distance mode studies and also
engage with other students studying on distance mode. See additional information under
Section 11 below.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
12. Online Support (Ticketing) System
An online support system is provided where you can report some of the issues that you may experience
regarding your studies. This system is easily accessible from the Moodle LMS system.
Figure 4: Online ticketing system
You can also make use of the Online Support (Ticketing System) for queries to be responded to by the
responsible person within 48 hours. We recommend you use this system for Help Topics or issues listed on
the system rather than email or telephone calls.
13. Online information, Tutorials and Distance Education Common Space
Information and Tutorials are provided in each course on the Moodle Learning Management
System which you should first familiarise yourself once you first access your courses.
Figure 5: Info-Tutorials on Moodle
Indicated in Figure 4 above, the Distance Student Orientation provides video tutorials on various activities you
would perform such as submitting your assignments, converting your documents into pdf format, changing
your email address, how to check your results when assignments have been graded and so on.
Updates and information with regard to your studies and related events would be shared in the Distance
Education Common Space which you can access from any course as shown in screenshot below. All students
studying on distance mode are linked this the space where you can collaborate or discuss general issues.
Figure 6: Distance Education Common Space
You will also find the Student Information Letter, your Vacation School Timetable and User Guides in the
Distance Education Common Space.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
14. Staff Contact Information
If you study conscientiously, your efforts will be rewarded. Should you need any assistance or clarification on
the module contents, you can reach the relevant staff members at the contact details as given below:
Tutor:
Ms B Dhlamani
0612063986
Assignment due dates, Availability of assignments,
Unmarked assignments, Vacation schools
Ms. Albertina Nelumbu
0612063721
Faculty officers:
Ms Nelago
0612063987
onelago@unam.na
Admissions
Ms T Nuuyoma
0612063609
tnuuyoma@unam.na
Registration
Ms G Van Wyk
0612063084
gvanwyk@unam.na
Appeals
Mr. H Hishongwa (SP)
063 220 2039
hhishongwa@unam.na
Addition of Modules
Ms. S Shapumba (HP)
064 502 6508
sshapumba@unam.na
Cancellations of Modules
Mr. I Mundumbu (RP)
066 268 6078
imundumbu@unam.na
Graduation
Ms. R Chata (KP)
066 262 6071
nchata@unam.na
Ms A Felix (PO)
065- 2323042
afelix@unam.na
Examination Officers:
Desley Goses (WHK)
061-2064881
dgoses@unam.na
For Exam marks and exam timetable, exam
related matters
Stephanie Nehoja (WHK)
061-2063715
snehoja@unam.na
eLearning Administrator:
Mr Owen Lisulo
0612063381
olisulo@unam.na
For Module/Subject content related matters,
Assignments marks and CA marks queries
bdhlamini@unam.na
Student Support Coordinator:
Moodle related queries (technical problems),
linking of Modules, etc.
Please create an online ticket for any assistance
Log In/Passwords To reset passwords & for
Logging onto Moodle and Portal
anelumbu@unam.na
All exam officers at respective
campuses assist students of
those campuses
0612063000
https://elearning.unam.edu.na/su
pport/open.php
Computer Centre/ IT Helpdesk
Team
061 2063014
061 2063041
itsupport@unam.na
NOTE: For additional information consult the Prospectus and UNAM General Information and Regulations
Prospectus.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
Serious offence not tolerated at all
Note well: Plagiarism
Plagiarism is “the wrongful appropriation or purloining, and publication as one’s own, of the ideas, or the expression of
the ideas of another” (OED). All published and unpublished material, whether in manuscript, printed or electronic form,
is covered under this description.
The Proctors’ Disciplinary Regulations concerning conduct in examinations (see Part 19.4. and 19.5, p. 52) state that
‘No candidate shall present for an examination as his or her own work any part of the substance of another person’s
work. In any written work (whether thesis, dissertation, essay, coursework, or written examination, or assignment)
passages quoted or closely paraphrased from another person’s work must be identified as quotations or paraphrases, and
the source of the quoted or paraphrased material must be clearly acknowledged.’ In all written work students must be
vigilant in citing the work they have referred to or quoted from (please see further Appendix D). Examples of plagiarism
and detailed advice as to how to avoid it are given on http://www.admin.ox.ac.uk/edc/goodpractice/: you are strongly
advised to consult this website.
It has been observed that some students merely download information from the Internet, copy verbatim from other printed
sources (including the Study Guide, employ other people to do their assignments for them, or plagiarise each other’s
assignments (either directly, that is, word-to-word, or through a re-arrangement of words or paragraphs in order to
deceive the tutor or marker).
These practices constitute very serious academic offences of academic dishonesty, alternatively, intellectual fraud, which
attract very serious and heavy penalties. Students must desist from such practices. Such students may score very high
marks but invariably perform very poorly in examinations. It is in the interest of such students to endeavour to exercise
their own intellectual faculties, do their own research, and personally do the set assignments.
No hardcopies are allowed, all assignment are to be uploaded through Moodle.
✓ Assignments should be submitted in PDF – only. Kindly save your assignments in PDF format
✓ Make sure that you submit one assignment as one file/document. Do not create and upload
several folders; do not zip the documents. Have 1 one document/file for 1 (ONE) entire
assignment.
✓ Assignments for modules with formulas can be handwritten, scanned in one document and
uploaded on Moodle accordingly.
✓ Make sure you submit a document that is readable and virus free.
✓ Make sure you upload the right file with the relevant assignment content.
✓ After submitting your assignment on Moodle do verify on the file you uploaded. Always try to
submit your assignment few days before the due date, this allows you to double-check all the
nitty-gritties.
NO LATE SUBMISSIONS WILL BE TOLERATED. NO LATE submission due to not adhering to the above
advises or guidance WILL BE ACCEPTED nor ENTERTAINED.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
AUA 3752
ASSIGNMENT
SEMESTER 2 2024
Question 1
(25
marks)
You are the senior in charge of the recently completed 28 February 2021 audit of Mayhem (Pty) Ltd,
a medium-sized company involved in the heating and cooling industry. The company does not have
an internal audit section or an audit committee. The company supplies electric/gas heaters, airconditioning, etc. During the audit, you had found the senior financial staff to be slightly
uncooperative, but you had put this down to the fact that the company had not had a particularly good
business year. You also got the impression that the financial director was in a rush to get the audit
completed and the financial statements and audit report signed and sent to the company’s
shareholders, loan finance providers and the bank.
Besides this strange atmosphere which you sensed, you were able to carry out the procedures you
deemed necessary and all outstanding audit matters were resolved. The financial statements and audit
report were signed off by the financial director, the chief executive officer and the engagement
partner on 15 April 2021 and distributed to users that afternoon.
The week after the financial statements were signed, you returned to Mayhem (Pty) Ltd to finish off
one or two things and were very surprised to be approached by the financial manager who indicated
that he needed to discuss an audit matter with you in private. He informed you that there had been
some deliberate manipulation of the financial statements which he wanted you to know about, as it
had been “done with good intentions and nobody got hurt”. He went on to explain that one of the
company’s loan finance providers had clauses in its loan agreement with Mayhem (Pty) Ltd which
enabled the finance provider to elect to have its loan repaid immediately if the audited annual
financial statements did not reflect certain ratios and percentages. Unfortunately, because the
company had not had a particularly good trading year, the specified ratios and percentages would not
have been achieved unless the financial statements were manipulated.
At this point you asked him how the financial statements had been manipulated and he responded as
follows:
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
“We overstated sales and debtors by manipulating cut-off at year-end to include some sales made in
March in the February sales and debtors figures, as well as creating a few fictitious sales to related
parties. We also overstated inventory and didn’t record some of the amounts owed to trade creditors
at year-end. Having been auditors ourselves, we had a reasonable idea of what procedures you and
your team would be carrying out and what you would be looking for. Although the financial
statements are probably materially misstated overall, we made sure that individual account headings
were individually not materially misstated. You may have noticed that we were all a little tense.
Anyway, we are expecting a good profitable year this year (an assumption which your going concern
procedures support), so there is no likelihood of this happening again or the investor suffering any
loss. As you know, the audited financial statements have been sent to all the interested parties and
we hope the matter can rest.
The financial director is aware that I have spoken to you and we hope that you will keep it
confidential. We won’t be conveying this information to your manager or engagement partner, or
anyone else for that matter, so you and your audit team will not have anything to answer for regarding
your audit.”
YOU ARE REQUIRED TO:
(a) Explain giving reasons, whether you would “keep this matter confidential” or whether you would
notify your manager and/or the engagement partner.
(5)
(b) Discuss whether you and your team could justifiably be accused of failing to carry out risk
assessment and further audit procedures properly.
(5)
(c) Discuss whether the audit manager could justifiably be accused of failing to conduct the
evaluation and concluding procedures properly.
(4)
(d) Discuss whether the manipulation of the financial statements constitutes a reportable irregularity.
(6)
(e) Discuss whether the annual financial statements at 28 February 2021 should be revised, and
explain the action which your firm will take should the directors refuse to revise them, which is what
your engagement partner believes will happen.
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(5)
FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
Question 2
(25
marks)
You are a manager in the computer audit section of Arthur & Anderson, a large auditing firm. You
are currently concerned with the audit of Wangezi (Pty) Ltd, a distributor of computer components,
software and accessories. Wangezi (Pty) Ltd uses EDI (Electronic Data Interchange) to conduct
business with a few of its trading partners. All EDI communications take place through a VANS
(Value
Added
Network
Service).
Ryan Chriss, the partner in charge of the audit of Wangezi (Pty) Ltd has asked you to assist in the
audit of this company and has indicated that he would like you to begin by considering the EDI
system as it relates to the revenue and receipts cycle. Initial investigations and enquiries of Muhle
Mankin (financial manager), in this regard have revealed the following details:
1. Retailers who require stock, transmit their orders to Wangezi (Pty) Ltd, using EDI. All retailers
who are recognised EDI trading partners, are noted as such in Wangezi (Pty) Ltd’s online debtors
masterfile.
2. Dumi Dlamini (chief debtors clerk) converts the order to an “order acceptance” advice by keying
in additional fields on the order and sending it back to the retailer concerned, using EDI. This is
followed up by despatch of the required stocks to the retailer. Wangezi (Pty) Ltd also has an online
stock masterfile.
3. When retailers receive the stocks ordered, they notify Wangezi (Pty) Ltd of deliveries received
and accepted, by keying in further fields to convert the “order acceptance” advice to a “delivery
acceptance” advice and sending it back to Wangezi (Pty) Ltd, again using EDI.
4.Once the retailer has acknowledged the receipt of goods, invoices can be generated automatically
by the system, by the insertion of additional fields to convert the “delivery acceptance” advice to an
invoice.
The
invoice
is
transmitted
to
the
retailer
using
EDI.
Muhle Mankin has also indicated to you that the company is considering the use of the internet to
expand its current level of electronic commerce activities. He is optimistic that the Internet could be
used as a better and more economical communication channel for EDI than the current system which
relies on a VANS. He is, however, anxious to hear your views on this matter.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
YOU ARE REQUIRED TO:
(a)Discuss the controls which you would recommend, to ensure the validity, accuracy and
completeness of invoices which would be automatically generated by the system described above.
You are only required to consider controls which should be in place from the point at which the
“delivery acceptance” advice is fetched from the VANS onwards.
(10)
(b) Provide a brief overview of the controls which should be in place over amendments to the debtors
and stock masterfiles.
(4)
(c) Respond to Muhle Mankin’s enquiry regarding the use of the Internet for electronic commerce
by discussing:
i.
Advantages which the company may derive by launching a Worldwide Website for
commercial purposes;
ii.
(3)
The impact on risk because of conducting EDI over the Internet, rather than using a
VANS, as is currently the case; and
iii.
(4)
Firewalls and the role they can play in addressing risks which arise because of conducting
electronic commerce over the Internet.
Question 3
(4)
(10 marks)
You are part of the audit team on the audit of The Windhoek Tennis Club. The year end of the club
is 31 March 2020.
The club has about 520 members who pay annual membership fees, for the privilege of playing
tennis at special rates on the state-of-the-art tennis courts. The membership fees are calculated with
reference to the club’s budgeted operating expenses for the following year. The purpose of the club
is not to make a profit but merely to provide its members with facilities to practice their favourite
sport.
Key financial information for the club for the year ending 31 March 2020 is as follows:
N$
5 200 000
Total membership fees received
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
Other income for the year (from fundraising events)
1 200 000
Surplus for the year
350 000
Non-current assets (mainly clubhouse and tennis courts)
4 000 000
Current assets (bank account & debtors)
800 000
Current liabilities (trade creditors)
350 000
It is your audit firm’s policy to use the BD6 guideline in order to calculate materiality.
You initially estimated the overall audit risk as high for the audit of The Windhoek Tennis Club for
the year ending 31 March 2020.
YOU ARE REQUIRED TO:
5.1 Calculate the materiality figure for The Windhoek Tennis Club – explain completely the
approach you are following in calculating the figure.
Question 4
(10)
(25 marks)
PART A
In terms of ISA 315, the auditor is required to gain an understanding of the company’s internal
control system. The statement suggests that this understanding can best be obtained by considering
the five components of internal control, namely:
•
The control environment;
•
The company’s risk assessment procedures;
•
The information system;
•
Control activities; and
•
Monitoring of controls.
It therefore stands to reason that when the auditor considers each of the above components, the
auditor will need to consider the effect of the company’s computerization on that component as well.
Controls in a computerized environment are categorized as either general controls or application
controls.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
YOU ARE REQUIRED TO:
4.1
Define the term “internal control”.
4.2
Define the term “general controls” and give two (2) examples of general controls. (4)
4.3
Define the term “application controls” and give two (2) examples of application (4)
(2)
controls.
PART B
During your audit planning stage, while you are gaining an understanding of the company’s internal
controls, including the client’s computerized systems, you have a conversation with Joey Fisch, the
Chief Information Officer of the company. He tells you the following:
“I don’t know if you know, but we are considering implementing a whole new accounting system
because our whole business strategy is changing. We need to keep up with the latest trends of the
industry. I believe most of our competitors are already providing internet sales to their customers;
we don’t even have a website yet, let alone internet sales that are linked to our accounting package!
And their employees’ can log in with staff cards and the system will automatically calculate their
wages for the day. Currently our payroll system is a manual process and is calculated by means of
spreadsheets and then journalized by the accountant to get the figures in the accounting records. We
are currently debating whether to develop our own software internally, and whether to buy a product
off the shelf.”
Later during your discussion with Joey Fisch, it became evident that the company currently lacks a
disaster recovery plan. Also, when you asked him whether they are currently producing back-ups of
their data, he admitted that he can’t recall when he last did a back-up of any data of the company.
YOU ARE REQUIRED TO:
4.4
List 3 (three) advantages of buying packaged software.
(3)
4.5
List 2 (two) disadvantages of buying packaged software.
(2)
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
4.6
List 2 (two) controls that companies can implement to minimize potential
disruption because of some disaster which prevents processing and/or
destroys/corrupts programmes and data.
(2)
PART C:
4.7
Unless the entire process of designing an in-house system (4)
is carefully controlled, a list of detrimental consequences
may follow, including the information transferred from
the old system to the new system may be erroneous,
invalid or incomplete. Therefore, strict controls are
necessary at the conversion stage to ensure that
programmes and information taken onto the new system
are complete, accurate and valid.
You are required to describe such controls that need to be
in place upon conversion to the new system. Divide your
answer into the following categories:
4.7.1
Data cleanup
(1)
4.7.2
Conversion method
(2)
4.7.3
Preparation and entry
(3)
4.7.4
Post-implementation review
(2)
QUESTION 5
(15 marks)
You have been the audit partner in charge of the audit of Mr Lawn (Pty) Ltd for the past seven years.
Mr Lawn (Pty) Ltd has got branches all over Namibia and is a retailer in lawnmowers and other
gardening equipment. All shares in the company are held a company listed on the Namibian Stock
Exchange. You relied on other auditors to perform test of controls and substantive procedures on
your behalf at the branches situated outside Windhoek. You review these auditors’ appointments
annually, especially their competence and independence, and you provide them with the necessary
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FACULTY OF COMMERCE, MANAGEMENT AND LAW
OLD CURRICULUM MODULES
audit programmes. The other auditors provide you with a written summary of their findings, based
on the audit procedures performed by them, in the form of a questionnaire drawn up by you.
Your audit clerks have just completed the final audit field work of Mr Lawn (Pty) Ltd for the
28 February 2017 financial year. They handed you the current audit file to enable you to carry out
the overall review of the financial information, to evaluate the audit evidence obtained and to
conclude on fair presentation.
Your audit clerks have performed little work on the management’s going concern assessment.
Management concluded that the company will continue as a going concern in the foreseeable future,
based on the fact that a Mr Lawn (Pty) Ltd’s holding company subordinated its loan to Mr Lawn.
The lawn is five times the audit’s materiality figure, and when disregarded, results in Mr Lawn’s
assets exceeding its liabilities.
YOU ARE REQUIRED TO:
Describe the audit procedures which you still must perform during the finalization phase of this audit.
Your answer should deal with the following subheadings:
5.1 Reliance on the other auditors
(5)
5.2 Subsequent events
(5)
5.3 Final analytical procedures & review of financial information
(5)
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