accg340 2013

This question paper must be returned. Candidates are not permitted to remove any part of it from the examination room.

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SESSION 2 EXAMINATIONS - NOVEMBER 2013

Unit Code/Name: ACCG340 Auditing and Assurance Services

Time Allowed: Two and a half hours plus 10 minutes reading time

Total Number of Questions: There are two sections to this paper: Section A contains 4 written answer questions. Section B contains 18 multiple choice questions.

Instructions:
The total exam paper is worth 80 marks.
Section A comprises 4 written answer questions worth a total of 62 marks.
Section A questions are not worth equal marks.
Section B contains 18 multiple choice questions worth a total of 18 marks (1 mark each).
All sections and all questions must be completed.
Answers to Section A are to written on the exam paper in blue or black ink in the spaces provided.
Answers to Section B are to be written on the Multiple Choice Answer Sheet.

Materials Permitted/Not Permitted:

Dictionaries:
No dictionaries permitted.

Calculators:
No calculators permitted.

Section
Question
Value
Mark
A
1
22

2
16

3
10

4
14

B
MCQ
18

Total
80

Section A (62 marks)

Question 1 (22 marks)

Assume you are the auditor assigned to the audit of J. Bebarfalds, a major listed department store chain in Australia. While doing research on the Australian retail industry, you read the following article in The Australian News Review:

“In disturbing news for any business reliant on household spending, economic survey figures due this week are expected to show consumers are becoming increasingly pessimistic….”. There is a risk that reduced consumer spending would eventually convince many retailers to cut staff or close altogether, sending reverberations