AUE4862/101/0/2017 ZAU4862/101/0/2017 NAU4862/101/0/2017

Tutorial letter 101/0/2017

APPLIED AUDITING

AUE4862/ZAU4862/NAU4862

Year Module

Department of Financial Governance

IMPORTANT INFORMATION:

This tutorial letter contains important information

about your module.

2

CONTENTS

1 INTRODUCTION ......................................................................................................................... 3

2 COMMUNICATION WITH THE UNIVERSITY ............................................................................. 3

2.1 Lecturers ...................................................................................................................................... 3

2.2 Department .................................................................................................................................. 4

2.3 University ..................................................................................................................................... 4

3 MODULE RELATED RESOURCES ............................................................................................ 5

3.1 Tutorial matter .............................................................................................................................. 5

3.2 Prescribed books ......................................................................................................................... 5

3.3 Calculator policy .......................................................................................................................... 5

4 STUDENT SUPPORT SERVICES FOR THE MODULE .............................................................. 6

4.1 myUnisa ....................................................................................................................................... 6

4.2 Group discussions/Study schools ................................................................................................ 6

4.3 Unisa Library services information ............................................................................................... 6

5 MODULE SPECIFIC STUDY PLAN ............................................................................................ 7

5.1 Study programme ........................................................................................................................ 7

5.2 Content ........................................................................................................................................ 7

6 ASSESSMENT ............................................................................................................................ 8

6.1 Assessment plan ......................................................................................................................... 8

6.2 Tests ............................................................................................................................................ 8

6.2.1 Objectives .................................................................................................................................... 8

6.2.2 Test timetable .............................................................................................................................. 8

6.2.3 Open book policy ........................................................................................................................10

6.2.4 Administration of the tests ...........................................................................................................11

6.2.5 Remark of tests ...........................................................................................................................11

7 EXAMINATIONS ........................................................................................................................12

Examination admission .............................................................................................................................12

AUE4862/ZAU4862/NAU4862/101

3

1 INTRODUCTION We welcome you as a student to the Department of Financial Governance and trust that you will find the academic year constructive and that you will be successful. You will receive a number of tutorial letters during the year. A tutorial letter is our way of communicating with you about teaching, learning and assessment. You must read all the tutorial letters you receive during the year immediately and carefully, as they always contain important and, sometimes, urgent information. Tutorial letter 101 together with CASALL2 Tutorial letter 301 contains important information about the scheme of work, resources and tests for this module. We urge you to read it carefully and to keep it at hand when working through the study material, preparing for the tests and the examination and addressing questions to your lecturers. We hope that you will enjoy this module and wish you all the best!

2 COMMUNICATION WITH THE UNIVERSITY

2.1 Lecturers

AUE4861/ZAU4861/NAU4861

Personnel Telephone number

Lecturers Mr B Barnard (Course leader) Ms J Kritzinger (Course leader) Mr K Bapela (Course leader) Ms L Grebe Mr W Kriel Mr T Matsimela Ms R van Beek

+27 12 429 2866 +27 12 429 8346 +27 12 429 2495 +27 12 429 4994 +27 12 429 2175 +27 12 429 4368 +27 12 429 4744

Availability of lecturers

Telephonically You can contact your lecturers telephonically, by making use of the course contact number provided below. An available lecturer will take your call and assist you as promptly as they can. The course telephone number is: +27 12 429 4184 Personal visits To avoid any disappointment, make an appointment with a lecturer as they are not always readily available.

4

E-mail You can also communicate with the lecturers via e-mail. Please note that feedback will not necessarily be given via e-mail, thus it is important to give your student number, telephone number, fax number, e-mail address and postal address. Due to the high volumes of e-mails received by lecturers from students it is not always possible to reply to these e-mails immediately. Please be patient as your e-mails will be attended to as soon as possible.

E-mail: AUDpostgrad@unisa.ac.za

Ensure that your student number, return address and telephone numbers are included with your enquiries. Always have your student number at hand when contacting the University. 2.2 Department The Department of Financial Governance is situated on the main campus on the first floor of the AJH van der Walt Building. Department of Financial Governance contact numbers: • Telephone: +27 12 429 4571 (secretary – Financial Governance). • Telephone: +27 12 429 4720 (postgraduate secretary – Financial Accounting). • Telephone: +27 12 429 4032 (postgraduate secretary – Auditing). 2.3 University

If you need to contact the University about matters not related to the content of this module, please consult the publication myStudies@Unisa that you received with your study material. This booklet contains information on how to contact the University (e.g. to whom you can write for different queries, important telephone and fax numbers, addresses and details of the times certain facilities are open).

You can also contact Unisa as follows: econCTA@unisa.ac.za Registration enquiries (activation of registration, incorrect

registration, curriculum control, qualification audit, additional modules for final year students)

exams@unisa.ac.za Examination enquiries (outstanding results, exam timetable, change of examination centre)

remark@unisa.ac.za Remark/recheck enquiries ficoncessions@unisa.ac.za Final year concession aegrotats@unisa.ac.za Aegrotat and special examination enquiries study-info@unisa.ac.za Study-info enquiries(official proof of registration, official

academic records, general enquiries) applications@unisa.ac.za Applications enquiries (new and returning students) AME@unisa.ac.za AME enquiries (foreign students qualifications and

matriculation exemptions) assign@unisa.ac.za Assignments enquiries finan@unisa.ac.za Financial enquiries (fees, outstanding balance, statements) despatch@unisa.ac.za Study material enquiries myUnisaHelp@unisa.ac.za Assistance with myUnisa myLifeHelp@unisa.ac.za Assistance with myLife e-mail accounts Casenquiries-postgraduate@unisa.ac.za College related enquiries (teach out, qualification articulation,

academic enquiries, everything relating to academic and tuition)

Casenquiries-CTA@unisa.ac.za College related CTA enquiries (everything relating to academic and tuition)

Postal address University of South Africa, PO Box 392, Unisa, 0003

mailto:AUDpostgrad@unisa.ac.zamailto:econCTA@unisa.ac.zamailto:exams@unisa.ac.zamailto:remark@unisa.ac.zamailto:ficoncessions@unisa.ac.zamailto:aegrotats@unisa.ac.zamailto:study-info@unisa.ac.zamailto:applications@unisa.ac.zamailto:AME@unisa.ac.zamailto:assign@unisa.ac.zamailto:finan@unisa.ac.zamailto:despatch@unisa.ac.zamailto:myUnisaHelp@unisa.ac.zamailto:myLifeHelp@unisa.ac.zamailto:Casenquiries-postgraduate@unisa.ac.zamailto:Casenquiries-CTA@unisa.ac.za

AUE4862/ZAU4862/NAU4862/101

5

3 MODULE RELATED RESOURCES 3.1 Tutorial matter You will receive tutorial letters during the year. Some of this tutorial matter may not be available when you register. Tutorial matter that is not available when you register will be posted to you as soon as possible. Please note that all tutorial matter will always be electronically available on myUnisa. Non receipt of hard copy study material does not constitute a valid reason for not being able to prepare for tests/examination, as the study material will always be available for download from myUnisa. Internet You can view the tutorial letters for the modules for which you are registered online on myUnisa at http://my.unisa.ac.za

3.2 Prescribed books

AUE4862

SAICA Handbook 2016/2017 SAICA LexisNexis; Durban 2016/2017

SAICA Legislation Handbook 2016/2017 SAICA LexisNexis; Durban 2016/2017

Auditing Notes for South African Students

Jackson, RDC, et al. LexisNexis; Durban Latest edition

Advanced case studies in External Auditing and Corporate Governance

Prinsloo, F.E. AuRet Publishing Latest edition

COMMENT Please refer to the list of official booksellers and their addresses in the myStudies@Unisa brochure. Prescribed books can be obtained from the University’s official booksellers. Should you have any difficulties obtaining books from the official booksellers, please contact the Prescribed Book Section as soon as possible at telephone number +27 12 429 4152 or e-mail vospresc@unisa.ac.za

3.3 Calculator policy Candidates may only use silent, electronic, battery-driven pocket calculators subject to the following conditions: • Calculators must be cordless, and may not have print-out facilities; and • Calculators that have a full set of alpha characters/keys are prohibited (i.e. NO programmable

calculators are allowed). • Any financial calculator will be allowed, as the following tables will not be provided in any of the

tests/examinations: - Tables of present value factors for various discount rates for varying periods; and - Tables of future value factors for various interest rates for varying periods; • The calculator function on mobile telephones or any electronic device, including but not limited to

laptops and/or any Smart Phone may not be used; and • Candidates may not share a calculator with another candidate in the examination room.

http://my.unisa.ac.za/mailto:vospresc@unisa.ac.za

6

4 STUDENT SUPPORT SERVICES FOR THE MODULE Important information appears in your myStudies@Unisa brochure.

4.1 myUnisa The myUnisa learning management system is Unisa's online campus that will help you to communicate with your lecturers, with other students and with the administrative departments of Unisa – all through the computer and the internet.

COMMENT It is advisable that you access myUnisa on a weekly basis as additional material and important notices are loaded on myUnisa. To go to the myUnisa website, start at the main Unisa website, http://www.unisa.ac.za, and then click on the “Login to myUnisa” link on the right-hand side of the screen. This should take you to the myUnisa website. You can also go there directly by typing in http://my.unisa.ac.za. Please consult the publication myStudies@Unisa, which you received with your study material, for more information on myUnisa.

4.2 Group discussions/Study schools Refer to general tutorial letter CASALL2 301/2017 for information regarding study schools.

4.3 Unisa Library services information Unisa Library login You will be required to provide your login details, i.e. your student number and your myUnisa password, in order to access the library’s online resources and services. This will enable you to view or print your electronic course material, request library material, view and renew your library material and use the library’s e-resources. Requesting books from the library Students are expected to purchase their own copies of prescribed books listed in Tutorial Letter 101. A limited number of copies are housed in the Unisa Libraries, subject to each branch library’s lending regulations. Problems experienced in obtaining copies from booksellers should be directed to the Prescribed Book section at e-mail vospresc@unisa.ac.za or telephone +27 12 429 4152.

http://www.unisa.ac.za/http://my.unisa.ac.za/mailto:vospresc@unisa.ac.za

AUE4862/ZAU4862/NAU4862/101

7

5 MODULE SPECIFIC STUDY PLAN

5.1 Study programme

Date

Description

10 January 2017 Tutorial letter 101

11 January 2017 – 24 January 2017 Tutorial letter 102 14 March 2017 Test 1

12 April 2017 – 18 April 2017 Tutorial letter 103 25 April 2017 Test 2 26 April 2017 – 2 May 2017 Tutorial letter 104 20 June 2017 Test 3 21 June 2017 – 27 June 2017 Tutorial letter 105 1 August 2017 Test 4 2 August 2017 – 8 August 2017 Tutorial letter 106 September 2017/October 2017 Revision/Examination 5.2 Content

Tutorial letter

Learning unit

Topics

102 1 2 3 4

• The Audit process • Pre-engagement activities • Planning an audit (Risk assessment, planning activities and materiality) • Planning an audit (Obtaining an understanding of the control environment)

103

5

6 7 8 9

• The Code of Professional Conduct, By-Laws and Rules regarding improper conduct

• The Auditing Profession Act (APA) of the IRBA • The Auditor’s responsibilities relating to fraud in an audit • King III Report and Code of Governance for South Africa • SAICA syllabus relating to Close Corporation Act and Companies Act

104 10 11 12

• Audit evidence • Test of control • Substantive procedures

105 13 14 15

• Completion of the audit • Reporting • Special audit investigations, internal audit and management consulting

services

106 - • Integrated questions/revision

8

6 ASSESSMENT

6.1 Assessment plan It is very important to read the instructions and recommendations contained in this tutorial letter, as well as in tutorial letter CASALL2 301/2017. This implies that you should work hard and long hours right from the very beginning of the year. Study the subject matter, which will be given for each assignment, thoroughly, and follow the assignment instructions as set out in this tutorial letter.

6.2 Tests 6.2.1 Objectives You must remember that you are now busy with a postgraduate course which comprises vast volumes of work. It is therefore not possible to start studying only a month or two before the final examination, and expect to pass. Four tests will be written during the year in order to give you the opportunity to have your progress evaluated. Please refer to tutorial letter CASALL2 301/2017 for more information regarding the tests. It is important that you should be accustomed to working under pressure as the time aspect of the examination paper poses a problem to many students. The tests are not the only method of gaining experience in working under pressure. If you complete the assignments in accordance with the suggested procedures during the year, you will become accustomed to working against time. It is extremely important that you become aware of the tempo at which you should work to be able to complete an examination paper within the time allowed. Please note that you are not allowed to write in pencil (tests and examination).

COMMENT Consistent studying throughout the year will increase your chances of success in the final examination.

6.2.2 Test timetable

Test Date Tutorial letter Nature of test

1 14 March 2017 102 Limited open book

2 25 April 2017 103 Limited open book

3 20 June 2017 104 Limited open book

4 1 August 2017 105 Limited open book

COMMENT Please note that TEST 4 will be a multiple choice paper (the test will be a limited open book test which includes reading time).

AUE4862/ZAU4862/NAU4862/101

9

Breakdown of the tests into time slots Students SHOULD be seated by no later than 08:30 FIRST SESSION 08:30 – 08:45 Handing out of paper 1, answer scripts and a separate “REQUIRED”

section placed upside down.

08:45 – 09:00

Reading time

09:00 – 10:00

PAPER 1: (40 marks) Applied Management Accounting CTA Level 2: MAC4862/ZMA4862/NMA4862

10:00 – 10:15

Collection of Paper 1 and handing out of Paper 2, answer scripts and a separate “REQUIRED” section placed upside down.

SECOND SESSION

10:15 – 10:30

Reading time

10:30 – 11:30

PAPER 2: (40 marks) Applied Financial Accounting l CTA Level 2: FAC4864/ZFA4863/NFA4863

11:30 – 11:45

Collection of Paper 2 and handing out of Paper 3, answer scripts and a separate “REQUIRED” section placed upside down.

THIRD SESSION

11:45 – 12:00

Reading time

12:00 – 13:00

PAPER 3: (40 marks) Applied Taxation CTA Level 2: TAX4862/NTA4862

13:00 – 13:15

Collection of Paper 3

BREAK / LUNCH

13:15 – 14:00

FOURTH SESSION

14:00 – 14:15

Handing out of Paper 4, answer scripts and a separate “REQUIRED” section placed upside down.

14:15 – 14:30

Reading time

14:30 – 15:30

PAPER 4: (40 marks) Applied Auditing CTA Level 2: AUE4862/ZAU4862/NAU4862

15:30 – 15:45

Collection of Paper 4 and handing out of Paper 5, answer scripts and a separate “REQUIRED” section placed upside down.

FIFTH SESSION

15:45 – 16:00

Reading time

16:00 – 17:00

PAPER 5: (40 marks) Applied Financial Accounting ll CTA Level 2: FAC4864/ZFA4864/NFA4864

17:00 – 17:15

Collection of Paper 5.

10

Unisa test and examination rules and regulations The following represent a summary of the most pertinent rules and regulations: • No candidate will be allowed to leave the venue during the first hour and the final 15 minutes of a

session. • In addition, no candidate will be allowed to enter the venue once reading time has started (see

breakdown of tests into time slots above). • Students will not be allowed to keep their bags, brief cases etc. with them during the

test/examination. You will have to remove your stationary, food, books and study material which you are allowed to use in the test/examination from their bags prior to the start of the session.

• The University accepts no responsibility for loss of private property at the test/examination venues. • Students who are registered for only one or two papers have to be seated 15 minutes before reading

time (see breakdown of tests into time slots). 6.2.3 Open book policy A limited open book approach is followed by SAICA for the Initial Test of Competence (ITC) Examination and Unisa follows a similar approach for tests and examinations. Permitted texts in tests and examinations No access to the internet shall be permitted during the tests/examinations (either by means of computers, cell phones, smart phones, tablets or any other similar technology). Candidates will be allowed to bring only the SAICA Handbook and SAICA Legislation Handbook into the test/examination venue.

COMMENT Only ONE version of each of the above books may be brought into the examination venue, although it may be either a version published in the current year or a version published in one of the previous years.

Candidates will only be allowed to highlight, underline, sideline and flag in the permitted texts. Writing on flags is permitted for reference and cross-referencing purposes only, that is, writing may only refer to the name or number of the relevant discipline standard, statement or section in the legislation. Candidates may not have in their possession any loose papers (whether affixed to the permitted texts or not). Only properly bound standard publishers’ editions will be permitted. Photocopies, printed copies of electronic versions, loose sections or isolated pages of texts are prohibited. Any contravention of these regulations will be considered to be misconduct and shall be dealt with in terms of regulation 11 (which sets out the rules applying to misconduct).

AUE4862/ZAU4862/NAU4862/101

11

6.2.4 Administration of the tests Please note that you will be notified of the centre at which you will be able to write the tests and that it may not necessarily be the same centre where you will write the final examination. Answer books will be provided. Your answer book will be posted to you after they have been marked. As soon as the marks are available they will be put on Internet (https://myUnisa.ac.za/portal). Each module must be answered in a separate book. Please write your student number and full postal address on the cover of each answer book. You are requested not to phone the lecturers or secretaries for your test marks because they do not keep record of the test marks. 6.2.5 Remark of tests Should you be unhappy with your test marking, please follow the following steps: • Forward your original script to the following address: The Subject Coordinator (Mr B Barnard) Department of Financial Governance AJH van der Walt Building PO Box 392 UNISA 0003 • It is very important that you make a copy of your test script before you send the original script. • You must include an explanation of why you would like your test to be remarked, as well as an

indication of instances where you were not awarded marks according to the suggested solution (the suggested solution will be available on myUnisa).

• When you send your test for a remark, the test in total will be remarked and not only certain sections. Should you receive a lower mark on the remark, your test mark will be adjusted accordingly.

• Please note that you have a limited period to query your tests results. No test marks will be adjusted after the expiry of this period. The following dates are applicable:

Test Test date Test remark requested before

1 14 March 2017 9 May 2017

2 25 April 2017 13 June 2017

3 20 June 2017 1 August 2017

4 1 August 2017 No remarks

• Unethical conduct

We have noted in the past that students have submitted tests for remarks after they have written in additional information as part of the solution after receiving the tests back. This is included in the definition of cheating as per the Unisa Students’ Disciplinary Code in Chapter 3, as it relates to the commission of any other fraudulent or dishonest practice whereby a student, whilst being examined by the University, seeks to mislead or deceive the examiner or the examination officer. Students found guilty of writing additional information in tests after receiving it back will be facing disciplinary steps as it is unethical conduct.

https://myunisa.ac.za/portal

12

7 EXAMINATIONS Use your myStudies@Unisa brochure for general examination guidelines and examination preparation guidelines. Examination admission Only students who comply with the following, will be allowed to sit for the examination: • Registered students who paid their study fees in full; and • have a minimum year mark of 40% for the best three tests during the year. You may use a non-programmable pocket calculator in the tests and examination. However, you are reminded that you must still show all your calculations. You may lose valuable marks if the examiner cannot see what you calculated and how and why you calculated it.

COMMENT The average mark of the three best tests of each paper (module) will constitute the student’s year mark. You need 40% to obtain examination admissions. If only one or two tests are written, the total marks of the tests written will be divided by three to obtain the year mark. If no test is written the year mark will be nil. The year mark contributes 20% and the examination 80% towards the final mark.