100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AUI3701 ASSIGNMENT 3 SOLUTIONS 2021 SAMIGO $12.31
Add to cart

Exam (elaborations)

AUI3701 ASSIGNMENT 3 SOLUTIONS 2021 SAMIGO

 65 views  5 purchases
  • Course
  • Institution

AUI3701 ASSIGNMENT 3 SOLUTIONS 2021 SAMIGO

Preview 1 out of 7  pages

  • July 29, 2021
  • 7
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers
avatar-seller
Contents
AUI3701 ASSIGNMENT 3 SOLUTIONS 2021 ............................................................................................ 1
QUESTION 1 ............................................................................................................................................ 1
An organisation’s policy requires a sealed bid process to sell cars that can no longer be used
efficiently. ............................................................................................................................................... 1
Define the term “fraud”. ......................................................................................................................... 2
1.3 Explain the internal auditor’s responsibilities and role in fraud investigation. ................................ 2
Question 2 (30 marks)............................................................................................................................. 3
You are the internal auditor of Breakout Ltd, a new company whose main business is the
manufacturing of steel gates for all the prisons nationwide. ................................................................. 3
2.1 List the different risk categories. ...................................................................................................... 4
Identify the weaknesses in the control environment based on the given information; and describe
the risks resulting from the identified weaknesses. ............................................................................... 4
QUESTION 3 ............................................................................................................................................ 5
Question 3 (10 marks)............................................................................................................................. 5
You have been assigned to the procurement audit for Breakout Ltd. ................................................... 5



AUI3701 ASSIGNMENT 3 SOLUTIONS 2021

QUESTION 1
Question 1 (10 marks)

An organisation’s policy requires a sealed bid process to sell cars
that can no longer be used efficiently. In reviewing the sale of some cars that
had been declared obsolete, the internal auditor found that management had not always
compiled with the stated policy. Records shown that several cars on which major repairs had
recently been performed had been sold at “negotiated prices”.

Management assured the internal auditor that by carrying out some limited repairs and
negotiations with knowledgeable buyers, better prices had been obtained for the salvaged cars
than what could have been obtained using the required “sealed bid” procedure. The internal
auditor suspected, however, that there might be more involved than management indicated.
Further investigation by the internal auditor revealed that the vehicles had been sold to
employees, at “negotiated prices” that were below market value.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller hiltontutorials. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.31. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52355 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.31  5x  sold
  • (0)
Add to cart
Added