AUI3702 EXAM PACK. The Internal Audit Process: Test Of Controls. Weaknesses Controls
Overtime hours are not approved by
section head of supervisors and
employees work overtime as the feel.
Having to work overtime should be
approved by the section head or the
supervisors
The security personal...
QUESTION 1
MCQ
1-D
2-A
3-A
4-C
5-D
6-D
7-D
8-B
9-C
10-B
QUESTION 2
2.1.
Weaknesses Controls
Overtime hours are not approved by Having to work overtime should be
section head of supervisors and approved by the section head or the
employees work overtime as the feel. supervisors
The security personal who mans the Security personnel should be present at
entrance is only in place during busy all times to ensure that employees clocks
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periods. only once with the clock card
There is no segregation of duties as There should be segregation on duties in
Apple Smith now almost everything in the respect to duties carried out by apple
department smith probably a senior personnel who
reviews the duties carried out by him
The clock cards are not made in terms of The personnel department should
authorized employee list prepare the clock cards in terms of the
authorized employee list
No segregation of duties Apple smith should not perform all the
duties, there should be segregation of
duties in respect to duties performed by
apple smith
There are no independent reconciliations Independent reviews and checks on the
and reviews on the work performed by work performed by apple smith should be
apple smith and there are only random checks carried out regularly and not on random basis
Granny tree cashes the cheque, prepares Segregation of duties is more essential at
the pay packets and updates the this level as fraud can be facilitated by
accounting records having one person performing all
functions
Employees are not required to present Employees are required to present their
their identification when collecting their identification when collecting their
payment payment
The two senior personnel who have The two senior personnel should have
conducted the payment have not reconcile the unclaimed wages with the
reconciled the unclaimed wages with the register
register
Question 3
3.1 Explain step by step how you would select a sample
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Establish the objectives of the sampling plan
-define the extent and composition of the population
-select a sampling method
-determine the sample size to be taken
-evaluate and report results
3.2. Calculate sample size
Sample size = total value of population/J Factor
= 500 000/10869,6 = 46.10
Calculation of J Factor
= precision
Reliability factor
=(0,05 x 500 000)/2.3
=10869,6
Sample interval = total value of PP/Sample size
500 000/46,10
=10845,99
3.5. Ratio analysis will be used by an auditor when performing analytical procedures.
During the performance stage an auditor when auditing transactions and account
balances, for different classes of transactions
NB Analytical procedures are classified as substantive procedures.
3.6. Calculate the following ratios
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