AUI3702 EXAM PACK 2021/2022.
This is a complete and an all-inclusive guide to AUI3702 - The Internal Audit Process: Test Of Controls
Weakness 2.2 Internal controls
1. Orders are being made without
receiving an authorized requisition
1. Orders should be made after
receiving authorized requisit...
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
DEE 0629730627
Downloaded by: mmatshephod | mmatshephod@gmail.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
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
DEE 0629730627
Downloaded by: mmatshephod | mmatshephod@gmail.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
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
DEE 0629730627
Downloaded by: mmatshephod | mmatshephod@gmail.com
Distribution of this document is illegal
The benefits of buying summaries with Stuvia:
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
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SOLUTIONS2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R67,33. You're not tied to anything after your purchase.
