The Internal Audit Process: Test of Controls (AUI3702)
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AUI3702 Assignment 2 (COMPLETE ANSWER) Semester 1 2024 - DUE 8 April 2024
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The Internal Audit Process: Test of Controls (AUI3702)
Institution
University Of South Africa
Book
Accounting Information Systems
AUI3702 Assignment 2 (COMPLETE ANSWER) Semester 1 2024 - DUE 8 April 2024 ;100 % TRUSTED workings, explanations and solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
QUESTION 1 20 MARKS Luxury Outdoor Limited is a manufacturer of patio furniture and...
AUI3702 Assignment 2 Semester 1 - DUE 8 April 2024
ACCOUNTING INFORMATION SYSTEMS THE PROCESSES AND CONTROL 2ND EDITION BY LESLIE TURNER – TEST BANK
AIN2601 EXAM PACK 2023
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AUI3702
ASSIGNMENT 2 SEMESTER 1 2023
, The Internal Audit Process: Test of Controls
AUI3702
Assignment 2
Semester 1 2024
Due Date: 8 April 2024
QUESTION 1 20 MARKS
Luxury Outdoor Limited is a manufacturer of patio furniture and outdoor cushions. The
production process is labour-intensive, and all patio furniture and outdoor cushions are
custom-made. For this reason, labour costs represent the major portion of costs. Luxury
Outdoor Limited has an in-house internal audit function.
The audit committee recently requested the internal audit function to perform an internal
audit of the payroll system. The audit committee is especially concerned about payroll
because the company’s accountant, whose services were terminated last month, had
neglected his duties, especially his duties concerning payroll.
The company employs approximately 500 workers in six departments. Within the
departments, there are a number of supervisors, each of whom is responsible for 10 to 20
workers. A production manager and her assistant are responsible for the overall operation of
the factory.
The payroll cost is currently approximately R300 000 per week, and the audit committee
suspects that there may be a number of irregularities such as wage payments to fictitious
employees and/or the payment of a full week’s wages to employees who took time off. Due
to pressure from the trade union, the company is forced to pay weekly wages in cash and
cannot implement a system for the electronic payment of wages.
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