AUI2601 Assignment 3 (COMPLETE ANSWERS) Semester 1 2024 (181077) - DUE 1 May 2024

AUI2601 Assignment 3 (COMPLETE ANSWERS) Semester 1 2024 (UNIQUE NO. 181077) - DUE 1 May 2024 ;100 % TRUSTED workings, explanations and solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... The relationship between the external auditor and the internal auditor must develop in such a way as to promote the interaction necessary to ensure economical auditing. Which one of the following factors will give rise to a poor relationship between internal and external audit activities? a. The internal auditor has the assurance that an independent person is evaluating the internal audit activity, and that he or she will produce objective recommendations. b. An opportunity is created for interaction that is advantageous to the external auditor, the internal auditor and the company. c. Uncertainty regarding the extent to which external auditors can rely on the work of internal auditors. d. The external auditor can reduce the extent of his or her audit procedures and audit tests if he or she intends to rely on the work of the internal auditor. After the recent completion of the audit on the distribution department, management requested you to perform an audit on the newly implemented online ordering system. You obtained copies of the organisational charts applicable to the ordering system. You also read through all the relevant policies and procedures. For each of the following controls indicate whether it can be classified as a preventative , detective or directive control. Programme changes made to the new ordering system should be authorised by the system manager. a. Preventative Control b. Directive Control C. Detective Control Personnel performance reviews are conducted on a six-monthly basis. a. Preventative Control b. Directive Control C. Detective Control Passwords from two different senior employees are required to approve the payment of orders on the new system. a. Preventative Control b. Directive Control C. Detective Control All procedure manuals and guidelines of the new ordering system were completed and distributed to all employees. Blank 4 a. Preventative Control b. Directive Control C. Detective Control The ethical "tone at the top" forms an integral part of the company's mission and strategy. Blank 5 a. Preventative Control b. Directive Control C. Detective Control Training opportunities for personnel are based on an employee's performance evaluation being implemented. Blank 6 a. Preventative Control b. Directive Control C. Detective Control Segregation of duties are being implemented. Blank 7 a. Preventative Control b. Directive Control C. Detective Control To gain access to the new online ordering system, an employee must enter his/her user ID and password. Blank 8 a. Preventative Control b. Directive Control C. Detective Control The use of pre-numbered sales orders. Blank 9 a. Preventative Control b. Directive Control C. Detective Control Security guards are assigned to all entrances and exits of the company building. a. Preventative Control b. Directive Control C. Detective Control All new employees must write and pass a computer literacy test. a. Preventative Control b. Directive Control C. Detective Control Classify each of the statements according to the elements of an audit finding. According to the new credit manager, strict adherence to established credit policy is not necessary. a. Effect b. Recommendation c. Condition d. Cause e, Criteria Management should investigate recruiting more staff for the credit department. a. Effect b. Recommendation c. Condition d. Cause e, Criteria Audit procedures showed that sales personnel frequently disregard credit guidelines when dealing with established customers. a. Effect b. Recommendation c. Condition d. Cause e, Criteria Orders over R50 000 require senior manager's approval of credit. a. Effect b. Recommendation c. Condition d. Cause e, Criteria Even though procedures and criteria were changed to reduce the number of bad debts written off, the loss of commission due to accounts written off has increased for some sales personnel. a. Effect b. Recommendation c. Condition d. Cause e, Criteria