B.Sc. ACCOUNTING, AUDITING AND FINANCE

INTERNAL AUDIT & FINANCIAL CONTROL – TAKE-HOME EXAMS – Spring 2020 Page 1
DEGREE: B.Sc. ACCOUNTING, AUDITING AND FINANCE
SEMESTER: EIGHT

College of Banking and Financial Studies
INTERNAL AUDIT & FINANCIAL CONTROL – TAKE-HOME EXAMS – Spring 2020 Page 2
Instructions to candidates:
1. This assessment is Take home exam which is a substitute of your Final exam. It is to
be completed Individually.
2. This Assessment accounts for 50% of the total marks available for this Module.
3. Answer All the Questions.
4. You are expected to Show all your workings clearly wherever needed.
5. Please start each answer on Fresh page.
6. Plagiarism is a form of cheating in which students use the work of others and present it
as their own. Do not Allow another student to copy your work and then submit it under
their own name. The college considers this form of cheating as a serious offence.
7. Please limit your discussions around the theoretical question to around 1500 – 2000
words. This assessment is mostly based on theoretical questions.
8. Please be aware that your work will be submitted through Turnitin. You must only
submit your own work including correct citations and references for any external
materials used in your work.
Turnitin ID ___________ Password _______________________
Note: It is important that you answer the question according to the definition of the verb.
A list of verbs that appear in the question requirements for each question in this paper is as
follows

There are TWO Sections
Section A – TWO (compulsory) questions to be attempted 60 marks weightage
Section B- One question (compulsory) 40 marks weightage
INTERNAL AUDIT & FINANCIAL CONTROL – TAKE-HOME EXAMS – Spring 2020 Page 3
Section A – Two compulsory questions
Question 01
Warren Buffet, one of the business tycoons in present era said, “Managers that always promise
to ‘make the numbers’ will at some point be tempted to make up the numbers”. The statement
emphasis of having ethical persons as head of companies. If the CEO and strategic level
management who practices fraud, they can twist earnings to make them look better than they
really are, thereby deceiving the users of the financial statement.
a) Discuss the motive for earnings management with suitable examples
(20 marks)
(Maximum word count – 400 words)
b) Evaluate earnings management from the utilitarian perspective. Can earnings
management be an ethical practice? Explain why or why not.
(10 marks)
(Maximum word count – 200 words)
Question 02
Assume you are facing an interview at an audit firm. A member of the interview panel asked
you to justify the link between, moral intensity, ethical leadership, and organizational culture
and how it will impact on the accounting firm?
Craft a response that you feel comfortable by describing the characteristics of ethical
leaders, the role of moral intensity in developing ethical organisations and evaluating the
importance of ethical leadership in accounting firms with suitable examples.
30 marks
(Word limit – 600 words)
INTERNAL AUDIT & FINANCIAL CONTROL – TAKE-HOME EXAMS – Spring 2020 Page 4
Section B
Mariam CPA is the accountant of a public listed company. She just completed meeting with
Salman, who is the Chief Financial Officer (CFO) of the company. Salman tried to convince
Mariam to go along with proposal to combine the revenue expenditures (15 various revenue
expenditures such as repair of motor vehicle, fuel expenditure etc.) related to vehicle
maintenance into one amount (OMR 40,000). Mariam knows that OMR 40,000 is a material
amount to earnings and rules in accounting require the expenses related to day to day
operations for a specific period should be linked to revenue generated for the same period.
Which will yield the most accurate income statement result. Therefore, Mariam asked time to
think about this matter.
However, at the end of the meeting Salman stated, “Mariam, you can get back to me tomorrow
on how you are going to work it out. But keep in mind that you should act upon the request of
management. Therefore, I really want you to act in favour of my proposal to capitalize the
revenue expenditure to boost the earnings and meet the earnings expectation of financial
analyst. This statement shows that Maryam is under great deal of pressure to fulfill the
requirement of Salman. Further Salman informed that adjustment on accounting entries will
help to provide for a bonus to management including herself.
Assume you are in Mariam’s position
Critically evaluate the given scenario and provide the possible course of action that
should be taken to resolve the ethical dilemma.
Note: your answer must include the
• key fundamental ethical principles for accountants that are more relevant for the given
scenario
• threats to independent faced my Mariam
• ethical issue faced by Mariam in the given scenario
• the stakeholders who will affected due to the given practices and who are the people
Mariam can get connected to resolve the ethical issue.
• the possible course of action that should be taken to resolve the ethical issue
(Total 40 marks)
(Maximum word count – 800 words)
……………………………………END OF EXAM PAPER……………………………

The post B.Sc. ACCOUNTING, AUDITING AND FINANCE appeared first on My Assignment Online.

Expert Help With This Assignment — On Your Terms