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2] The audit junior has asked you whether internal control questionnaires (205) should be completed as well as internal control evaluation questionnaires {ICEQs). Which of

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2] The audit junior has asked you whether internal control questionnaires \"(205) should be completed as well as internal control evaluation questionnaires {ICEQs). Which of the following statements is correct in relation ICQS and ICEQS? a] ICEQS determine whether control exist which meet specific control objectives; ICQs determine whether there are controls which prevent or detect specified errors or omissions b} ICEQs are generally easier to apply to a variety of different systems than ICQS. c} ICQs are likely to overlook how internal control deal with unusual transactions; this will normally have to be recorded using ICEQs. d} ICQs can give the impression that all controls are of equal weight; this issue is resolved by using ICEQs. 3] Tick the appropriate box to show whether the internal control activities identified in the audit junior's notes would satisfy the objective of preventingfdetecting a material misstatement if it i operating effectively. Audit junior's notes All orders are recorded on pre-printed, three-part sequentially numbered order forms. One copy is kept by the sales clerk; one copy is forwarded to the warehouse for the dispatch of inventory, and one copy is sent to the customer as evidence of the order. The sales clerk regularly performs reviews of the standing data on the system, matching the price of flowers against an up to date price list. To ensure completeness of orders, a sequence check is performed on the sales invoices manually by the sales clerk and any missing documents are investigated. Sales invoices are posted on a weekly basis to the sales day book and accounts receivable ledger. 4] You instruct the audit to confirm whether the post is opened by more than one individual. l[fiver which of the following internal control objectives would this provide assurance? 1. Cash receipts are not misappropriated. 2. All cash receipts that occurred are recorded. 3. Cash receipts are recorded at the correct amounts in the ledger. 4. Cash receipts are posted to the correct receivables accounts and to the general ledger. a] 1 only b} 2 only c} 3 and 4 d} 1 and 4 5] During the course of the audit, the audit team identified numerous deciencies in internal control relating to the sales system. The amount exposed to the deficiencies were high and you have concluded that it is likely that the deficiencies would result in material misstatements in th financial statements. A deficiency was also identified in the purchases system but further investigation showed this to be a minor, isolated issue. Which of the following statements is correct regarding the deficiencies which must be included i the report to management? a] The deficiencies identied in the sales system only b} The deficiencies identied in the purchase system only c} The deficiencies identied in the sales and purchases system d} Neither the deficiencies identified in the sales system nor the purchases system

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