[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 procurement policies, procedures, and internal controls.
Identify key risks and controls in the procurement cycle.
Define Audit Scope and Objectives:
Align the audit objectives with procurement risks and business requirements.
Ensure coverage of validity, completeness, valuation, and cut-off.
, Gather Background Information and Conduct Preliminary Risk Assessment:
Review prior audit reports, financial records, and supplier contracts.
Identify potential fraud risks, compliance issues, or inefficiencies.
Develop an Audit Programme and Select Audit Techniques:
Define audit procedures, such as document reviews, sample testing, and interviews.
Establish criteria for assessing compliance and internal controls.
Determine Resource Allocation and Timeline:
Assign audit team members based on expertise.
Set deadlines and milestones for each audit phase.
Communicate with Key Stakeholders and Obtain Approval:
Inform management and relevant departments about the audit process.
Obtain necessary access to records and systems.
Understand the Procurement Process: Gain a comprehensive understanding of the
procurement function, including the policies, procedures, and key controls in place. This
involves reviewing relevant documentation and talking to procurement staff.
Identify and Assess Risks: Identify the key risks associated with the procurement process,
such as fraud, errors in recording transactions, non-compliance with regulations, and inaccurate
financial reporting. Assess the impact and likelihood of these risks to prioritize audit focus areas.
Set Audit Objectives and Scope: Based on the risks identified, define clear audit objectives
(e.g., validity, completeness, valuation, and cut-off). Determine the scope of the audit, including
which areas of the procurement function will be reviewed (e.g., purchase orders, goods receipts,
invoice processing).
Develop an Audit Programme: Create a detailed audit programme outlining specific audit
procedures to achieve the defined objectives. This includes designing tests to verify the accuracy
of records, completeness of transactions, and compliance with internal policies.
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 procurement policies, procedures, and internal controls.
Identify key risks and controls in the procurement cycle.
Define Audit Scope and Objectives:
Align the audit objectives with procurement risks and business requirements.
Ensure coverage of validity, completeness, valuation, and cut-off.
, Gather Background Information and Conduct Preliminary Risk Assessment:
Review prior audit reports, financial records, and supplier contracts.
Identify potential fraud risks, compliance issues, or inefficiencies.
Develop an Audit Programme and Select Audit Techniques:
Define audit procedures, such as document reviews, sample testing, and interviews.
Establish criteria for assessing compliance and internal controls.
Determine Resource Allocation and Timeline:
Assign audit team members based on expertise.
Set deadlines and milestones for each audit phase.
Communicate with Key Stakeholders and Obtain Approval:
Inform management and relevant departments about the audit process.
Obtain necessary access to records and systems.
Understand the Procurement Process: Gain a comprehensive understanding of the
procurement function, including the policies, procedures, and key controls in place. This
involves reviewing relevant documentation and talking to procurement staff.
Identify and Assess Risks: Identify the key risks associated with the procurement process,
such as fraud, errors in recording transactions, non-compliance with regulations, and inaccurate
financial reporting. Assess the impact and likelihood of these risks to prioritize audit focus areas.
Set Audit Objectives and Scope: Based on the risks identified, define clear audit objectives
(e.g., validity, completeness, valuation, and cut-off). Determine the scope of the audit, including
which areas of the procurement function will be reviewed (e.g., purchase orders, goods receipts,
invoice processing).
Develop an Audit Programme: Create a detailed audit programme outlining specific audit
procedures to achieve the defined objectives. This includes designing tests to verify the accuracy
of records, completeness of transactions, and compliance with internal policies.
