Core Marker’s Comment Sheet
Course Name: Advanced External Auditing (AU2)
Modules: 1 and 2
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PLEASE NOTE FOR SUBSEQUENT ASSIGNMENTS AND EXAM PURPOSES
When answering assignment (and examination) questions, students should carefully read the requirements of the question. Marks are awarded for each valid point included in your answer. The specific terminology of the question is important. If the question asks for items to be “listed”, it is sufficient to list the items ...view middle of the document...
If the form of the answer is not specified (e.g., a memo, letter, etc.), it is probably best to use a point form of answering, rather than a paragraph form. The length of the answer should be determined from the wording of the question and the number of marks allocated.
Many students have an incorrect view of the purpose of these marker’s comment sheets. They are not intended to be an answer key that presents you with model solutions to the homework questions. They are intended to address the main problems encountered by students and provide directions as to where to find the reading material covering the subject matter of each question. Providing complete solutions would be a breach of copyright and would limit the ability of the Association to reuse the questions in subsequent years.
It is unfortunately necessary to remind students of the Association’s policy with respect to attribution of material quoted in answers. The use of another’s work, even if it is your textbook or lesson notes, requires that the source of the work be given. Failure to do so constitutes plagiarism -- theft of intellectual property. The Association considers such actions to be a serious breach of professional ethics. Students who quote the text or other sources without attribution should receive a warning from their marker and, if a second instance occurs, should be reported to the Association for potential disciplinary action.
Overview of Module 1:
This module considers the value added by assurance services and the environment in which the auditor works in the post-Enron era. A framework for performing assurance engagements is presented. Module 1 also suggests an approach for recognizing ethical dilemmas of the sort encountered by public accountants. The final topic provides a review of the audit risk model and the audit process.
Overview of Module 2:
In this module, you look at crucial considerations in the planning phase of an audit engagement, beginning with the decision whether to accept the engagement. Practical forms and checklists are introduced to assist you in obtaining the knowledge that you need, in making the important assessments, and in exercising your professional judgement about the various client issues you may face. The module concludes with consideration of the special issues that an auditor encounters when auditing a client for the first time.
Question 1 (15 marks)
Recent examinations in this course have contained twenty multiple choice questions worth 1.5 marks each so each assignment contains eight to ten multiple choice questions. Some general tips to assist you in answering such questions might be useful. The wording of the examination is as follows:
“Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)...