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2020 Auditing CTA L2 FT EOS - Required

The document outlines the requirements for the Applied Audit and Governance exam for CTA Level 2, focusing on various audit procedures and governance concerns related to Yummy Chicken Holdings. It includes specific tasks such as discussing risks of material misstatements, planning audit procedures, preparing a memorandum on statutory concerns, and identifying controls in the audit process. The total marks for the exam are 100, with detailed instructions for each section.

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Lasker Boffin
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57 views2 pages

2020 Auditing CTA L2 FT EOS - Required

The document outlines the requirements for the Applied Audit and Governance exam for CTA Level 2, focusing on various audit procedures and governance concerns related to Yummy Chicken Holdings. It includes specific tasks such as discussing risks of material misstatements, planning audit procedures, preparing a memorandum on statutory concerns, and identifying controls in the audit process. The total marks for the exam are 100, with detailed instructions for each section.

Uploaded by

Lasker Boffin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CTA LEVEL 2 AND FULLTIME JANUARY INTAKE APPLIED AUDIT AND GOVERNANCE 2020 END

OF SEMESTER: REQUIRED

Required Sub- Total


total Marks
a) With reference to working paper M104 “Obtaining an
understanding of the entity and its environment” discuss the risks
of material misstatements at
i. The overall financial statements level. (10 marks) 20 21
ii. Assertion levels. (10 marks)

Communication and logical flow 1

b) Based on the given information on Yummy Chicken Holdings,


discuss the nature, timing and extent of the audit procedures and
resources that you would plan for performing for the 2020 audit. 12 13

Communication and logical flow 1

c) Prepare a memorandum to the audit partner outlining any


statutory and governance concerns evident in working paper
M106 “Governance”. The memorandum should be organised
under the following headings:
• Companies and Other Business Entities Act 24:31 (4 11 12
marks)
• King IV considerations (7 marks)
1
Presentation and communication

d) Describe the substantive audit procedures you would perform on


the reconciling items of the Crispy Spices account as at 31 April 10 10
2020 evidenced in working paper M108 “Significant transactions”

e) Discuss the substantive audit procedures you would perform to


obtain sufficient and appropriate audit evidence over the
Intercompany loan made by NyamaChicken to YChicken on 31 7 7
April 2020 evidenced in in working paper M108 “Significant
transactions”

Disregard all general procedures, they have been done


accordingly

f) Using the information in Working Paper M110,


• Identify controls in the system description and for each
controls identified, describe test of control(s) you would
perform to test the operating effectiveness of the dial-a-
meal application
Page 1 of 2 ©Chartered Accountants Academy 2020
CTA LEVEL 2 AND FULLTIME JANUARY INTAKE APPLIED AUDIT AND GOVERNANCE 2020 END
OF SEMESTER: REQUIRED

• Present your answer in the following tabular format:

Control Identified (1) Test of Control (1) 20 22


Presentation and communication 2
g) Discuss the accounting implications of ingredients ordered from
Crispy Chicken on 16 April in line with IAS 2 and IAS 21. 15 15
• Ignore presentation and disclosure
• Show amounts where possible
Total 100

Page 2 of 2 ©Chartered Accountants Academy 2020

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