AUI3702 ASSIGMENT 2
(ESSAY TYPE ) SEMESTER
th
1 2025 DUE 7 APRIL 2025 .
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.
Define the Audit Scope1
Clearly outline the boundaries of the audit, including which processes and time periods will be covered.
This step ensures that the audit is focused and manageable, aligning with the internal auditing standards
that require a defined scope to satisfy the objectives of the engagement.
(ESSAY TYPE ) SEMESTER
th
1 2025 DUE 7 APRIL 2025 .
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.
Define the Audit Scope1
Clearly outline the boundaries of the audit, including which processes and time periods will be covered.
This step ensures that the audit is focused and manageable, aligning with the internal auditing standards
that require a defined scope to satisfy the objectives of the engagement.
