LIGENTIA CRES 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 Suggested Solution Internal Examiner: Mr C Mkhabela CA (SA) Internal Moderator: Mr INT Mthembu CA (SA) 1 | Page
Auditing 3B- 2021 2AUD302 and 2AUT302 Test 1 Suggested Solution Part 1: Based on the information provided in work paper C01 under headings: Dispatch of sales and changes to the sales prices of E-buy's products: Identify the controls and formulate test of controls audit procedures that you would perform to test the operating effectiveness of controls identified above in E-buy's sales for FY2017. 1. Access to the SmartCount system is through unique username and password. (1) 2. Dispatch devices are kept in a locked safe overnight. (1) 3. Dispatch devices can only be accessed via unique username and password. (1) 4. Holding area is access controlled and only relevant person can gain access by fingerprints identification. (1) 5. Dispatch controller checks the goods against the dispatch note, seals the order in a box. (1) 6. Fast delivery driver electronically signs dispatch note for evidence of receipt of goods. (1) 2 | Page - Attempt to log in into the Smartcount system using invalid username and password. (1) - Observe where mobile devices are kept overnight to ensure unauthorised access is prevented (locked also accepted) (1) - Attempt to log in into the dispatch devices system using invalid username and password. (1) - Attempt to log into these devices using existing password used in accessing SmartCount system. (1) - Attempt to access the holding area using your unregistered finger to ensure unauthorised access is denied. (1) - Observe the employees as they access the area. (1) - Observe the dispatch controller as he/ she check goods against the request. (1) - Observe whether the controller seals the box and electronically marks it as ready for collection. (1) - Test count goods in the boxes and compare to the dispatch delivery note. (1) - Observe the collection of sealed boxes by Fast delivery driver and whether the driver electronically signs the dispatch note on receipt of goods. (1)
7. For dispatch note that has not been matched for more than 24 hours, system generates exception report and the warehouse manager investigates the exception reports. (1) 8. Sophia Malala electronically approves recommendations made to sales price listing. (1) 9. Marketing staff log-in using unique username and password to make price recommendations into the system. (1) 10. Once approved logs are produced and saved in an encrypted folder in the server. (1) Total available 29 Total max 20 Note to the marker: - Inspect the sample of dispatch notes for goods that has been delivered fir evidence of electronic signature by delivery driver. (1) - Enquire/ Discuss with the warehouse manager of the process when resolving the unmatched dispatch note. (1) - Inspect the exception report and identify that