236 PART C THE EXTERNAL AUDIT PROCESS 1. 2. 3. 4. 5. All sales are made on credit. Potential clients complete credit application forms. The credit clerk, Tom Willings, allocates credit terms and a credit limit to each customer after verifying their creditworthiness with the credit bureaux. After ensuring that all the necessary information and documentation has been received from the client, the credit manager, Sandy Lee, signs the application form as approval of the credit terms and limit. DreamHomez provides financing to creditworthy clients. DreamHomez provides clients with pre-numbered, obligation-free quotations. Once a client has accepted and signed the quotation, the project manager, Thabo Mhlangu, verifies his/her creditworthiness on the approved credit application form and signs the quotation as proof of his having performed the check. After having received an approved quotation, the legal department draws up a contract, which is signed by both the credit manager and the client, thereby legally binding the latter to the repayment of the loan and the payment of all costs relating to the work done. Revenue recorded is based on the percentage of completion. Clients are invoiced monthly on pre-numbered invoices. Interest on the loans accrues from the date of invoicing. different Consu include for spee The financial manager performs monthly debtor reconciliations, which she signs as proof of performance. Consul ac th a They duri Inc Th REQUIRED Design the audit procedures that should be performed in order to obtain sufficient, appropriate audit evidence regarding the revenue figures of DreamHomez for the 31 December 20X1 financial year-end indicating in each case whether it is a substantive procedure, a test of control or a dual-purpose test. [22] LEVEL 3