AUI3703 ASSIGNMENT 2 SOLUTIONS 2022 SEMEMSTER 2
QUESTION 1 32 marks
The demand for public transport, especially the use of the Translux-Train has increased
dramatically because of the recent increase in the petrol price. The number of daily commuters
using the Translux-Train has increased by more than 80% and it is expected to increase even
more over the next few months.
You are a senior internal auditor employed by Translux-Group. Translux-Group’s
responsibility
is to ensure that the Translux-Train operates effectively and efficiently. Translux-Group also
needs to ensure that the Translux-Train’s operations can handle the increase in commuters
daily.
You are responsible for auditing the procurement department. The main responsibility of the
procurement department is to procure additional train carriages to ensure that all the trains are
operating at maximum capacity. The chief audit executive (CAE) has requested you to focus
on the economical procurement of the additional carriages, and to ensure that the operations
of the procurement department are effective and efficient. During the internal audit you
discover the following:
1. Allocation of responsibilities and authority is unclear. efficiency,
2. There is no purchasing policy in the department. economy
3. No measures are in place for measuring departmental performance. efficiency
4. The train carriages were sourced through obtaining quotes from two suppliers. economy
5. The department currently has four vacancies that still need to be filled. efficiency
6. Documentation relating to procurement resides in the operations department which hinders
QUESTION 1 32 marks
The demand for public transport, especially the use of the Translux-Train has increased
dramatically because of the recent increase in the petrol price. The number of daily commuters
using the Translux-Train has increased by more than 80% and it is expected to increase even
more over the next few months.
You are a senior internal auditor employed by Translux-Group. Translux-Group’s
responsibility
is to ensure that the Translux-Train operates effectively and efficiently. Translux-Group also
needs to ensure that the Translux-Train’s operations can handle the increase in commuters
daily.
You are responsible for auditing the procurement department. The main responsibility of the
procurement department is to procure additional train carriages to ensure that all the trains are
operating at maximum capacity. The chief audit executive (CAE) has requested you to focus
on the economical procurement of the additional carriages, and to ensure that the operations
of the procurement department are effective and efficient. During the internal audit you
discover the following:
1. Allocation of responsibilities and authority is unclear. efficiency,
2. There is no purchasing policy in the department. economy
3. No measures are in place for measuring departmental performance. efficiency
4. The train carriages were sourced through obtaining quotes from two suppliers. economy
5. The department currently has four vacancies that still need to be filled. efficiency
6. Documentation relating to procurement resides in the operations department which hinders
