AUI3702 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7
April 2025
100% GUARANTEEED
,AUI3702 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7
April 2025
QUESTION 1 15 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 3 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. (3)
QUESTION 1.1
Six (6) planning steps for the internal audit of the procurement cycle
(3 marks)
, To properly plan the internal audit of the procurement cycle, the following steps
should be taken:
1. Understand the procurement process and related controls
o Gain a thorough understanding of the procurement procedures,
policies, and internal controls in place.
2. Identify and assess risks
o Identify potential risks related to procurement such as fraud,
unauthorized purchases, or non-compliance with procedures.
3. Define the audit objectives and scope
o Clearly outline what the audit intends to achieve and which
procurement processes or periods will be covered.
4. Develop the audit programme
o Design audit procedures aligned with objectives such as validity,
completeness, valuation, and cut-off.
5. Gather and review relevant documentation
o Collect procurement policies, supplier contracts, purchase orders,
delivery notes, and payment records.
6. Allocate resources and establish timelines
o Assign audit team members, determine timeframes, and ensure access
to relevant personnel and data.
1.2 Describe two (2) audit procedures for each of
the audit objectives identified. (12) Maximum 15
Marks
QUESTION 1.2
Audit procedures for each of the four audit objectives (Validity,
Completeness, Valuation, Cut-off)
(12 marks, Max 15 marks)
ANSWERS) Semester 1 2025 - DUE 7
April 2025
100% GUARANTEEED
,AUI3702 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7
April 2025
QUESTION 1 15 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 3 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. (3)
QUESTION 1.1
Six (6) planning steps for the internal audit of the procurement cycle
(3 marks)
, To properly plan the internal audit of the procurement cycle, the following steps
should be taken:
1. Understand the procurement process and related controls
o Gain a thorough understanding of the procurement procedures,
policies, and internal controls in place.
2. Identify and assess risks
o Identify potential risks related to procurement such as fraud,
unauthorized purchases, or non-compliance with procedures.
3. Define the audit objectives and scope
o Clearly outline what the audit intends to achieve and which
procurement processes or periods will be covered.
4. Develop the audit programme
o Design audit procedures aligned with objectives such as validity,
completeness, valuation, and cut-off.
5. Gather and review relevant documentation
o Collect procurement policies, supplier contracts, purchase orders,
delivery notes, and payment records.
6. Allocate resources and establish timelines
o Assign audit team members, determine timeframes, and ensure access
to relevant personnel and data.
1.2 Describe two (2) audit procedures for each of
the audit objectives identified. (12) Maximum 15
Marks
QUESTION 1.2
Audit procedures for each of the four audit objectives (Validity,
Completeness, Valuation, Cut-off)
(12 marks, Max 15 marks)
