UNIVERSITY OF LONDON
AC3093 ZB (279 0093)
BSc Degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diplomas in Economics and Social Sciences and Access Route
Auditing and Assurance
Friday, 18 May 2012 : 10.00am to 1.00pm
Candidates should answer FOUR of the following EIGHT questions: TWO from Section A, ONE from Section B and ONE further question from either section. All questions carry equal marks.
© University of London 2012 UL12/0010
PLEASE TURN OVER Page 1 of 6
SECTION A Answer TWO questions from this section and not more than one further question. (You are reminded that four questions in total are to be attempted with at least one from Section B.)
You have just been approached by the newly-appointed Senior Regulator for the financial services (including accounting and auditing) industry in a country which has previously had little or no regulation on the provision of financial information. The Regulator has said that his first priority is to improve the quality of annual financial statements which the major companies in the country publish. The Regulator has established working parties to examine improvements in the quality of accounting and financial reporting practices. Another working party has been established to examine the quality of audit field work. The Regulator tells you that he wants your working party to put forward proposals which will improve the quality of audit reporting. He is concerned that present practices allow individual auditors to report in their own way. This has led to confusion, since there are so many different styles of audit report. The Regulator believes that a standardised approach will reduce this confusion. He is aware that there are international auditing standards on auditing and asks you to examine the possibility of adopting an approach consistent with the international...