You are the audit senior assigned to the audit of TeleBuz Limited (TeleBuz), an airtime wholesale company based in Johannesburg.
You obtain an understanding of the process followed by the company regarding its inventory management. TeleBuz purchases airtime
in bulk from the different network providers in South Africa and also purchases printing paper in bulk upon which its clients print their
airtime vouchers.
TeleBuz has implemented the following on the airtime management system to control the airtime management system:
Technicians manage the profiles of clients on the system in relation to purchases. The sales representatives can view their client
profiles as well as the stock available on the system. Debtors clerks can select stock items from the system for personnel use with the
approval of the finance manager. The debtors network clerk can view the serial and pin number of inventory items when performing
status checks to confirm which vouchers are active.
Which one of the following alternatives best describes the control activity that TeleBuz is trying to achieve?
You obtain the following payroll information from the payroll manager. The payroll system has been set up to account for the standard
Dashboard / My courses
hours in accordance with/ the
AUE2602-23-S2 / Welcome
employment contract. Fuel Message
attendants/ who
Assessment 6
work additional hours are required to complete an overtime
form which is sent to the payroll department weekly for capturing by Mr Diesel, the payroll clerk. The system automatically calculates
the gross and nett wages along with the relevant deductions. These calculations are not reviewed.
Which one of the following risks will be a consequence of the fact that the wage calculations are not reviewed?
A company’s accounting systems are all computerised and located on a local area network. The following control policy is in place at
the company:
Online access to the company’s bank account is limited to only five individuals in the company.
Select the correct alternative that indicates whether the practice is an application or general control, and also indicate the category of
internal control the practice relates to.
Select one:
a. Application control – control activity
b. Application control – access control
c. General control – system development
d. General control – access control
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Question 4
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Which one of the following application controls is an example of a sequence check?
Select one:
a. The creditors masterfile is amended by the creditors clerk after logging in with his/her username and password.
b. The creditors clerk will have to type in the supplier’s 10-digit account number in order to record transactions on the supplier’s
account in the creditors masterfile.
c. The system will not allow a purchase order to proceed for authorisation unless the quantity order field is completed.
d. The masterfile amendment forms are checked against the log to identify any missing forms.
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