Organisation : South African Comprehensive Assessment Institute (SACAI)
Subject: Accounting
Download : ACCN P1 June 2024 Question Paper
Country : South Africa
Website : https://www.sacai.org.za/examinations/
SACAI Accounting Question Paper
Download South African Comprehensive Assessment Institute (SACAI) Accounting ACCN P1 June 2024 Question Paper.
SACAI Accounting Questions
Question 1: Ethics, Corporate Governance And Audit Report (20 marks; 15 min)
1.1 Ethical Issues:
Required:
Choose an explanation from COLUMN B that matches an ethical issue in COLUMN A. Write only the letter (A – E) next to the question number (1.1.1 – 1.1.5) in the ANSWER BOOK:
Column A Ethical Issue – Column B Explanation:
1.1.1 White-Collar Crime A. A problem with more than one right answer or course of action, which may be more right than the other.
1.1.2 Price Fixing B. When a person uses confidential information which leads to them gaining an advantage over others.
1.1.3 Moral Dilemma C. An illegal activity of stealing an asset and altering information to hide the crime.
1.1.4 Insider Trading D. Crime of a sophisticated nature by people with influence in a business.
1.1.5 Fraud E. An illegal agreement between businesses or persons to manipulate the selling price of certain products.
1.2 Corporate Governance and Audit Report:
An extract of the external report of STORM Ltd. is presented.
Required:
1.2.1 Briefly explain your understanding of ‘good corporate governance’. (2)
1.2.2 Explain why a company must have their financial statements audited by an external auditor. (2)
1.2.3 Identify the type of audit opinion that the company received and provide a reason for your answer. (3)
1.2.4 An investigation of the marketing expense mentioned in the audit report revealed that an amount of R180 000 was for a holiday to Thailand for the CEO and his family that covered accommodation and air tickets. The bookkeeper was instructed to reflect this as a marketing expense. The CEO tried to convince the independent auditor to ignore this as it had been recorded in the financial statements.
** Explain why the independent auditor did not follow the request of the CEO. Provide TWO reasons. (4)
** Provide TWO possible consequences of this audit report, for the CEO and the company.
Information:
Extract From The Report Of The Independent Auditors:
We have audited the annual financial statements of STORM Ltd. for the year ended 28 February 2024. Financial statements are the responsibility of the company’s directors. Our responsibility is to express an opinion based on our audit.
International Standards on Auditing require that we perform the audit to obtain reasonable assurance that the financial statements are free of misstatement. Audit opinion
The financial statements fairly represent the financial position of the company on 28 February 2024, except for the marketing expense in the Statement of Comprehensive Income which could not be verified, as no documentation exists for this expenditure.
FC Financial Group
Chartered Accountants (SA)
15 June 2024
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