[TYPE THE COMPANY NAME]
AUI3702
Assignment 2
(COMPLETE
ANSWERS) Semester
1 2025 - DUE 7 April
2025
[Type the document subtitle]
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
AUI3702 Assignment 2 (ESSAY TYPE)
Semester 1 2025 - DUE 7 April 2025
Course
The Internal Audit Process: Test of Controls (AUI3702)
Institution
University Of South Africa
Book
Internal Control Audit and Compliance
The Internal Audit Process: Test of Controls - AUI3702 Assignment 2 (100%
COMPLETE ESSAY TYPE ANSWERS) Semester 1 2025 (218925) - DUE 7 April
2025 ;100 % TRUSTED workings, Expert Solved, Explanations and
Solutions.....
QUESTION MARKS The chief audit executive (CAE) decided that, while you
are busy assisting the procurement department, you may as well perform
the assurance audit of the procurement function originally scheduled for
later in the year. After identifying the risks, you have compiled the following
audit objectives to include in your audit programme. I Validity: To determine
that only valid purchases are recorded. II Completeness: To determine that
all the goods received from suppliers are recorded as purchases in the
purchase journal. III Valuation: To determine that the liability in respect of
credit purchases is recorded at the correct value. AUI3702/1/2025 IV Cut-off:
To determine that purchases accounted for in the current period relate only
to goods received in the current period. REQUIRED MARKS 1.1 List six (6)
planning steps you would need to undertake to properly plan the internal
audit of the procurement cycle.
Understand the Procurement Process – Review the procurement policies, procedures, and
controls in place to ensure compliance with organizational policies and regulations.
Identify and Assess Risks – Identify key risks related to procurement, such as unauthorized
purchases, fraudulent transactions, or misstatements in financial records.
Define Audit Scope and Objectives – Establish the boundaries of the audit, ensuring
alignment with the assurance objectives (validity, completeness, valuation, and cut-off).
, Gather Relevant Documentation – Collect procurement records, supplier contracts, purchase
orders, invoices, and payment records to assess compliance and accuracy.
Develop Audit Procedures – Design test procedures to evaluate internal controls, including
transaction sampling, reconciliation, and review of authorization levels.
Assign Audit Resources and Timeline – Allocate personnel and set a timeline to ensure a
structured and efficient audit process.
1. Understand the Procurement Process and Risks
Review Policies and Procedures: Examine the organization's procurement policies,
approval limits, and vendor selection processes.
Identify Key Risks: Assess risks such as unauthorized purchases, duplicate payments,
fraud, or supplier favoritism.
Examine Past Audit Reports: Look at previous audit findings to identify recurring
issues or areas needing improvement.
2. Define Audit Scope and Objectives
Determine the Scope: Specify which aspects of procurement will be audited (e.g.,
purchase orders, supplier payments, contract compliance).
Align with Organizational Needs: Ensure the audit covers critical areas such as policy
compliance, efficiency, and risk mitigation.
Set Clear Objectives: Align the audit with key procurement risks, such as ensuring all
purchases are valid, accurately recorded, and appropriately authorized.
3. Gather Relevant Documentation
Collect Procurement Records: Obtain purchase orders, supplier contracts, invoices, and
receiving reports.
AUI3702
Assignment 2
(COMPLETE
ANSWERS) Semester
1 2025 - DUE 7 April
2025
[Type the document subtitle]
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
AUI3702 Assignment 2 (ESSAY TYPE)
Semester 1 2025 - DUE 7 April 2025
Course
The Internal Audit Process: Test of Controls (AUI3702)
Institution
University Of South Africa
Book
Internal Control Audit and Compliance
The Internal Audit Process: Test of Controls - AUI3702 Assignment 2 (100%
COMPLETE ESSAY TYPE ANSWERS) Semester 1 2025 (218925) - DUE 7 April
2025 ;100 % TRUSTED workings, Expert Solved, Explanations and
Solutions.....
QUESTION MARKS The chief audit executive (CAE) decided that, while you
are busy assisting the procurement department, you may as well perform
the assurance audit of the procurement function originally scheduled for
later in the year. After identifying the risks, you have compiled the following
audit objectives to include in your audit programme. I Validity: To determine
that only valid purchases are recorded. II Completeness: To determine that
all the goods received from suppliers are recorded as purchases in the
purchase journal. III Valuation: To determine that the liability in respect of
credit purchases is recorded at the correct value. AUI3702/1/2025 IV Cut-off:
To determine that purchases accounted for in the current period relate only
to goods received in the current period. REQUIRED MARKS 1.1 List six (6)
planning steps you would need to undertake to properly plan the internal
audit of the procurement cycle.
Understand the Procurement Process – Review the procurement policies, procedures, and
controls in place to ensure compliance with organizational policies and regulations.
Identify and Assess Risks – Identify key risks related to procurement, such as unauthorized
purchases, fraudulent transactions, or misstatements in financial records.
Define Audit Scope and Objectives – Establish the boundaries of the audit, ensuring
alignment with the assurance objectives (validity, completeness, valuation, and cut-off).
, Gather Relevant Documentation – Collect procurement records, supplier contracts, purchase
orders, invoices, and payment records to assess compliance and accuracy.
Develop Audit Procedures – Design test procedures to evaluate internal controls, including
transaction sampling, reconciliation, and review of authorization levels.
Assign Audit Resources and Timeline – Allocate personnel and set a timeline to ensure a
structured and efficient audit process.
1. Understand the Procurement Process and Risks
Review Policies and Procedures: Examine the organization's procurement policies,
approval limits, and vendor selection processes.
Identify Key Risks: Assess risks such as unauthorized purchases, duplicate payments,
fraud, or supplier favoritism.
Examine Past Audit Reports: Look at previous audit findings to identify recurring
issues or areas needing improvement.
2. Define Audit Scope and Objectives
Determine the Scope: Specify which aspects of procurement will be audited (e.g.,
purchase orders, supplier payments, contract compliance).
Align with Organizational Needs: Ensure the audit covers critical areas such as policy
compliance, efficiency, and risk mitigation.
Set Clear Objectives: Align the audit with key procurement risks, such as ensuring all
purchases are valid, accurately recorded, and appropriately authorized.
3. Gather Relevant Documentation
Collect Procurement Records: Obtain purchase orders, supplier contracts, invoices, and
receiving reports.
