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FACULTY OF BUSINESS AND ECONOMIC SCIENCES

DEPARTMENT OF APPLIED ACCOUNTING

Audit and Corporate Governance

BCG1111
Semester 1

MODULE GUIDE
2026

COMPILED BY: Lynn Schoeman

Lecturer
Department of Applied Accounting

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1 Prescribed literature

 Auditing Notes for South African Students, Thirteenth Edition, 2023

2 Recommended literature
 Public Finance Management Act (PFMA) -
[Link]
 Municipal Finance Management Act (MFMA) -
[Link]
 Sarbanes Oxley Act -
[Link]
_2002.pdf
 [Link]
[Link]

 Journals
 International Journal of Auditing
 IA Advisor (Journal of the Institute of internal auditors (SA))
 The Accountant (Journal of SAIPA)

 Websites
 [Link] – The Institute of Directors South Africa (IoDSA)
 [Link] – The South African Institute of Professional Accountants
(SAIPA)
 [Link] – The Institute of Internal Auditors (global site)
 [Link] – South African Institute of Chartered Accountants
(SAICA)

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3 Information of Lecturers and Head of department

 Head of Department:

Mrs L Bester
2nd Avenue 227
Tel: 041 504 3769
E-mail: [Link]@[Link]

 Lecturer and Module coordinator:

Mrs L Schoeman (full time)

2nd Avenue 223
Tel: 041 504 1328
E-mail: [Link]@[Link]

 Lecturer

Dr M Labuschagne (part time)

2nd Avenue 234
Tel: 041 504 3562
E-mail: [Link]@[Link]

 Secretary of School:

Ms Aadiela Abrahams
Second Avenue Campus, Room 0227
Tel. 041 504 3803
E-mail: [Link]@[Link]

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4 Work schedule

Week no. Date of 1st day of Study unit description and/or activity Reference
week

1 9 February Welcome and Introduction

2 16 February Chapter 1 Professional Ethics Powerpoint Slides

3 23 February Chapter 2 Introduction to Auditing Chapter 1

Chapter 3 Statutory Matters

4 02 March Chapter 3

Chapter recap and Tutorial Chapter 1, 2 and

5 09 March
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ASSESSMENT 1 THURSDAY 12TH MARCH Chapter 1, 2 and 3

VENUE AND TIME TO BE CONFIRMED

6 16 March Chapter 4 Corporate Governance Chapter 4

7 23 March Review of Scripts

RECESS 29 March – Sunday 06 April

8 06 April Chapter 4
Chapter 4 Corporate Governance

9 13 April Chapter 4
Chapter 4 Corporate Governance

ASSESSMENT 2 THURSDAY 16TH APRIL Chapter 4

VENUE AND TIME TO BE CONFIRMED

10 20 April Chapter 5 Internal control Notes

11 27 April Review of scripts Notes

12 04 May Chapter 5 Internal control Notes

Chapter recap and Tutorial

13 11 May

14 18 May Collection of scripts and checking of marks

PLEASE NOTE:

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ALTHOUGH EVERY EFFORT WILL BE MADE TO ADHERE TO THE SCHEDULED DATES AND TOPICS,
THE PROGRAM AND TEST DATES ARE SUBJECT TO CHANGE DURING THE SEMESTER.
SICK TEST – THURSDAY 8TH MAY
TIME AND VENUE TO BE ANNOUNCED

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 5. COURSE MANAGEMENT

Credit for this course is achieved by means of an exam for BCG1111 in June/July. A pass
mark of 50% is required in order to be credited with this course.

Test 1 0.45
Test 2 0.45
Moodle/tests, attendance, spot tests, 0.10
assignements
Final mark 100%

This module is an examinable module, the semester mark (class assessments) will
carry a weight of 40% towards your final overall mark.

The examination will carry a weight of 60% towards your final overall mark.

Reasons for absence from an assessment must be produced within three working days of the
assessment being administered. Illness will not be regarded as a valid reason for absence
from an assessment unless a valid medical certificate is produced. If a medical certificate was
handed in the University reserves the right to consult with the doctor concerned as to the
severity of the illness.

*Module Assessments / Sick Test (important information):

1. All dates for module assessments and the sick test must still be confirmed, please note
these provisional dates for planning purposes. These dates will be confirmed during face-
to-face lecture periods and via your student email address.

2. It is each student’s responsibility to ensure that they are aware on which date and time the
sick test will be written, lecturers do not take responsibility for a student who misses the
assessment.

CLASS ATTENDANCE
 Illness will not be regarded as a valid reason for absence from a class unless a valid
medical certificate is produced.
 No late comers will be tolerated.
 Lecturers will take regular class attendance which will count towards students’ final
marks.

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 Tutorials will be taken in which will count towards the final marks. These tutrials will take
place after a section of the work is completed and at the discretion of the lecturer.

6. Moodle learning site

This module will be offered face-to-faface. Students will be required to access Moodle online
learning as par of this [Link] note that scheduled face-to-face lecture sessions will not
be recorded or made available on the Moodle site.

Students will be expected to download Module material from the Moodle site

7. Part time lectures

Part time letures for this module are scheduled on Thursday evenings at 17.30. Only students
registered as a part-time student may attend at this time. Please remain in contact with your
lectured Dr Mario Labuschagne regarding these lectures.

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PURPOSE
To equip students with the theoretical concepts in relation to professional ethics and
corporate governance.

LEARNING OUTCOMES

 Define the concepts of professional ethics.

 Explain and apply concepts of corporate governance (with specific reference to
Governance codes and guidance proonouncements – King reports).
 Discuss the composition and functions of Governance structures (Authoritative
Body, Audit, Risk and IT comittees.)
 and role of audit committees.
 Explain and apply the principles of internal control and risk (Manual and
computerised.)

CORE CONTENT

 Professional ethics
 Corporate governance:

o Governance structures of organizational governance structures (Audit, Risk

and IT committees);
o Composition, appointment and structure of audit committees.
o Audit committee functions and roles.
o Advantages and disadvantages of audit committees.

 Internal controls in business

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ADDITIONAL CONTACT DETAILS

Once you have perused the Faculty App and you find that you need to direct a query to the specific
person, prepare the email, indicating in the subject line what the issue is about, and then greeting the
person, formulating your email very clearly, indicating your student name and number, the relevant
qualification and in a short and precise manner, the nature of the request and the necessary
information, a thank you and your name, surname, student number and qualification (signature for
email once you are registered for a programme).
Role Name & Surname E-mail
Departmental Mrs Aadiela
[Link]@[Link]
Secretary Abrahams
Academic s225886197@[Link]
Sigqibo Silwana
advisor
Faculty
administrator
Registration
Module
Vusumzi Mjuza ([Link]@[Link]
additions/change
s
‘Propensity’ letter
for NSFAS
First point of
information about
faculty
Welcome
Know your
department
Faculty Information
Faculty APP Digital How2 [Link]
Orientation
Campus Maps
Virtual tour
FAQs
Res Info
Academic Support
Contact Us
Examination
For exam queries. exams@[Link]
office
Student Records Academic record, studentrecords@[Link]
graduation certificate;
letter of completion
(only after marks are
formally published),

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 Role Name & Surname E-mail
change of personal
details
Student Copy of statement;
StudentAccounts@[Link]
Accounts statement inquiries
FinancialAid@[Link]
Funding issues,
Financial Aid
concessions
Programme
Ms L Bester
leader
[Link]@[Link]
Diploma in
Accountancy
Programme
leader Ms M Chalmers
Information related to
Advance [Link]@[Link]
a programme if not
Diploma in
covered in the
Accountancy
prospectus.
Programme
Leader Dr M Labuschagne
PG Diploma in [Link]@[Link]
Internal Auditing
MCom and PhD
Dr TG Beck
in Accounting
[Link]@[Link]
programmes
HoD -
Department of Mrs Lizel Bester
[Link]@[Link]
Applied
Accounting
Dr Nuraan
[Link]@[Link]
HoD - HRM Agherdien

HoD - Dr Paul Tai-Hing [Link]-hing@[Link]

Management
Mr Stephen Newman [Link]@[Link]
HoD - Law
HoD - Applied Mr David Blignaut [Link]@[Link]
Languages

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EXTRACT OF RULES TAKEN FROM THE GENERAL PROSPECTUS

2024 GENERAL PROSPECTUS_NELSON MANDELA UNIVERSITY

G1.3 Academic Progression and Re-admission of Students

G1.3.1 The University has the legal authority to refuse the re-admission of a student and will
do so, if a student is considered not to be making satisfactory academic progress in a
programme he/she is enrolled in.
G1.3.2 Academic progression and Re-admission rules applicable to a particular Faculty,
qualification or programme are published by the University.
G1.3.3 A student who has been refused re-admission more than once, may not apply for
admission to a different programme.

G1.4.12.1 A student shall not be permitted to register for a particular module unless he/she
has met the requisite requirement(s) as stipulated in the faculty rules.

G1.4.13 Cancellation of modules when requisite requirements are not met:

If it becomes clear that a student is following a module for which he/she has not met the
requisite requirement(s), the registration for the module will be cancelled.

G1.5.2.1 Modules are scheduled without clashes on the timetable in terms of the
qualification/programme curriculum requirements, but they do not make provision for a clash-
free timetable:
G1.[Link] across the multiple year levels of a qualification/programme curriculum; OR
G1.[Link] for students repeating modules within or across years; OR
G1.[Link] for all elective modules within a qualification/programme curriculum.
G1.5.2.2 Students may not register for modules that clash on lecturing timetables, except
with the permission of the Head of Department concerned.
G1.5.2.3 It is the responsibility of the student to ensure that he/she is not registered for
modules that clash on the timetable.
G1.5.2.4 In the event of a clash, the responsibility rests with the student to amend his/her
registration accordingly.
G1.5.3 Class group attendance:

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G1.5.3.1 A student must ensure that he/she attends the class group (including practicals and
tutorials) he/she is assigned to.
G1.5.3.2 Where a module has been linked to a class group, the onus is on the student to
ensure that it does not result in a clash with another module on his/her timetable.
G1.5.3.3 If a clash is determined after registration, the onus is on the student to amend
his/her registration accordingly.

G1.5.4 Class attendance for part-time and full-time students:

Students registered as full-time or part-time for their respective qualification or programme
shall attend classes which may be scheduled during day or evening periods as published on
the official lecture timetable.

G1.5.5 Academic week:

Classes, assessments and other academic activities normally extend from Mondays to
Fridays, with e.g. the first classes of the day starting at 07:45 and the final classes ending at
20:45. Classes, assessments and other academic activities may also be scheduled on
Saturdays as required.

G1.10 Assessments
Please refer to this section regarding all general rules – it is the students responsibility to
ensure they are aware of the general rules.

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 TUTORIALS 2
TUTORIAL (15 marks)

1. Why do we need a Companies Act (1) ?

2. Name the five policy objectives around which the Companies Act 61 of 1973 is
built (5)?
3. Companies Regulation 27 has two important functions. Name these two
functions (2).
4. Section 11 of the Companies Act says that you can choose any name for your
company even if is the same as another company as long as the logos are
different. True or False (1)?.
5. What does the following acronyms stand for (3)?
a. PMFA
b. MFMA
c. SOX
6. Briefly explain what the above mentioned legislation (PFMA,MFMA and SOX is
used for (3)

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TUTORIAL 2 (32 marks)

1. Corporate Governance is about principles not the law. Comment (3).

2. Explain the difference between the “comply or else” approach and the “apply or
explain” approach to corporate governance (3).

3. Identify three reasons for South Africa not adopting a “comply or else” approach
to corporate governance (6).

4. Despite the King III Code of governance principles adopting the “apply or explain”
approach, the JSE requires listed companies to follow a “comply or else”
approach. True or False? Explain (2).

5. Identify and give a brief explanation of the three key aspects of the King III Code
(6).

6. Explain how (each of) innovation, fairness and collaboration relate to

sustainability (3).

7. What is an integrated report (1)?

8. To which entities does the King III Code of governance principles apply (2)?

9. Explain the term “inclusivity of stakeholders (2).

10. Give four examples of stakeholders in a large company other than the
shareholders (4).

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TUTORIAL 3

JayB Ltd is a listed manufacturing company. Due to resignations from the audit
committee, the company wishes to appoint three new members to join the only
remaining member from the previous committee. The remaining member is Robbie
Wessels, an independent non-executive director of JayB Ltd and a certified financial
analyst. The procedure which the company will follow will be to request the nominations
committee to present its recommendations to the shareholders as to who the
shareholders should elect to the audit committee at the upcoming annual general
meeting.

The nominations committee has called for the names of individuals to be submitted to it
for consideration for appointment to the audit committee. The following names have
been put forward:

1. Gambhir Gull - Company secretary of JayB Ltd.

2. Rod Dodger - Professor of corporate law at Unisa and not
connected to JayB Ltd in any way
3. Karl Zeiss - Chairman and non-executive director of JayB Ltd.
4. Terry Ticker - Senior partner of Ticktock Inc, JayB Ltd’s auditors.
He is not the designated auditor, but does advise the
company on taxation
5. Aaron Khumalo - CA(SA), senior manager of JayB Ltd’s BB – BEE
function
6. Klark Gayble - CA(SA) an independent non-executive director of
JayB Ltd.
7. Theuns Jordaan - Production director of MayB (Pty) Ltd, a subsidiary of
JayB Ltd.
8. Jennifer Jacobs - An industrial psychologist who has no connection with
the JayB group, but is well known in business circles.

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9. Rod Grind - CA(SA) and former chairman of JayB Ltd who retired
four years ago. He holds 4% of the shares in JayB
Ltd and his company Rodds (Pty) Ltd supplies JabyB
Ltd with certain manufacturing materials. Although he
resigned his chairmanship he still holds a position of
non-executive director of JayB Ltd.

YOU ARE REQUIRED TO indicate whether each of the above is eligible for
appointment to the audit committee of JayB Ltd if the company is to comply with the
highest standards of corporate governance. Fully justify your decisions.

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Tutorial 4 - 40
Question 1 (31 marks)

1. What is the purpose of designing and implementing internal controls in a

business (4) ?
2. List five objectives business sets to minimize risks (5)?
3. Identify and explain the components of internal control in terms of ISA 315 (10).
4. Distinguish between division (segregation) of duties and isolation of
responsibilities (2).
5. Name and explain the 5 limitations of internal control. Use your own example (not
the text book or lecturer examples (10).

Question 2 (9 marks)

Gunco Ltd is a large manufacturer of various hand weapons used by the military. The
following actions, policies and procedures are in place at the company.

Activities

1. All prospective employees are required to undergo psychometric testing before

they are employed at the company.
2. On arrival at the visitor’s entry security gate, all visitors’ vehicles are searched
before they enter the premises. Items taken from visitors, e.g. cameras, firearms,
are recorded in a register by the security officer and the register is signed by the
visitor.
3. The dispatch area is security controlled, and every dispatch of goods is checked
against the supporting documentation by a dispatch clerk who signs the
documentation. The dispatch manager then re-checks everything thoroughly and

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 signs a “dispatch release form”. At this stage, the goods are loaded onto an
armoured vehicle in the presence of a member of the defence force.
4. Every asset at Gunco Ltd has a metal tag securely stuck onto it which displays a
unique asset number.
5. Entry to the small arms and ammunition warehouse is strictly controlled using
retina scanners and security alarms.
6. Gunco Ltd’s organisational department has an ongoing project which aims at
improving and refining the company’s policies and procedures for defining
authority, responsibility and reporting relationships throughout the organisation.
7. Any member of staff who is found in the small arms and ammunition warehouse
and is not authorised to be there is dismissed immediately. All employees are
regularly made aware of this strictly enforced regulation.
8. Each month a Gunco Ltd board committee meets with senior personnel from the
defence force to discuss national security and military activity on the African
continent and its potential effect on Gunco Ltd.
9. Every year Safe and Sound, an independent consulting company, performs a
comprehensive review of Gunco Ltds’ physical security as well as its information
system security.

YOU ARE REQUIRED TO match each action, policy and procedure above (1 - 9) to
a component of the internal control process (a - e) mentioned below. If you select
“control activity”, please indicate which type of control you consider it to be (e.g.
segregation of duties).

a) control environment
b) control activity
c) information system
d) risk assessment process
e) monitoring of controls

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