AUDITING 3B- Test 1 2021 CLIGENTIA CRESS UNIVERSITY OF ZULULAND University of Zululand, Private Bag X1001, KwaDlangezwa, 3886 W: www.unizulu.ac.za FACULTY OF COMMERCE, ADMINISTRATION & LAW DEPARTMENT OF ACCOUNTING AND AUDITING 2AUD302 & 2AUT302- Auditing 3B TEST 1 -3 September 2021 DURATION - READING AND WRITING: 90 MINUTES FULL MARKS: 60 Internal Examiner: Mr C Mkhabela CA (SA) Internal Moderator: Mr INT Mthembu CA (SA) INSTRUCTIONS TO STUDENTS: 1. This paper consists of One question (set out on pages 2 to 5) excluding this cover page. Ensure that your paper is complete. 2. Where more than one answer book has been used, clearly identify the sections answered on the top of each page. 3. Fill in all the details your details to ensure that the script clearly depicts your identity. 4. Use only blue or black ink. Do not write in pencil; pencil-written work will not be marked. 5. Typed SCRIPT will not be marked. 6. Work NEATLY and LOGICALLY. Marks will be awarded for pervasive skills (communication, language, writing style, clarity of expression, presentation, logical and well-constructed answers,). 7. In answering the questions, record any assumptions you may consider necessary. No questions will be answered by invigilators during the exam. 8. Clearly separate the different sections of your answer and where applicable start every new (required) question on a new page of your answer book. 9. Read the REQUIRED section properly, more than once and again while answering the question to ensure you provide a direct adequate response. By writing this online-based assessment you agree to the University rules against plagiarism and any other form of dishonesty. Page 1 of 5
AUDITING 3B- Test 1 2021 Description C01 Extract from the system description for a sale transaction at E-buy Workpaper Client: E-buy Ltd Prepared by: KM Date prepared: 26 August 2021 C01 Year end: 30 September 2021 Reviewed by: Date reviewed: Subject: Extract from the system description for a sale transaction at E-buy C1 Background E-buy sells retail products online via its website and mobile application called E-mobile. There are 25 categories of products, ranging from electronics, lifestyle, media and computer games to fashion items. E-buy owns all the products it sells to its customers. E- buy outsources the delivery of purchased products to Fast Delivery (Pty) Ltd ('Fast Delivery'), a company that specialises in the delivery of e-commerce retailers' sale products. E-buy has one warehouse in Johannesburg and another in Cape Town. E-buy makes use of an enterprise resource planning (ERP) programme called SmartCount. SmartCount was specifically tailored to the needs of the business so as to provide seamless and direct access to both E-buy warehouses by Fast Delivery via a wide area network (WAN) C6 Dispatch of sales The SmartCount system identifies the closest dispatch warehouse from which the delivery is t take place, based on the delivery address field completed by a customer. The warehouse manager logs onto the SmartCount system with a unique username and password and assign the dispatch note to the first available