Assessment 2 2.3 Explain four weaknesses aknesses with the controls that you have been able to identify E3 PC3.1,33 8 marks 2.4 As the auditor, you will assess that the internal control system is implemented correctly E3 PC3.3 3 and is effective by using tests of controls which concern of: marks 2.5 Explain the three types of tests of control you would use in this business. E3 PC3.3 6 marks Version 11 C6202 ASMT2 202020 Assessment As the new partner in the dating for you that Food Inc Ltd, use. You have been provided w the m o he s n st sales are cash sales, which means a lot of cash is on the premises of the com The supplier has an agreement with the sales manager that the ked if the sales manager provides them with the contact details of the customers unts manager banks the available cash daily. When the account manager leaves to cash, there is one assistant who oversees the office and records any cash that comes in as well as makes the necessary adjustments to the records. The account ho provided the assistant with handwritten procedures for authoring. controlling source documents. The assistant is the owner's daughter and she is in the process of completing her Advanced Diploma in Accounting The accounts manager completes a monthly budget and ensures that proper forecasting of costs is included. This has helped the business to remain having a positive bank balance. A monthly trial balance is also completed where source documents are checked. The accounts office has no cameras but there is a safe that only the owner and accounts manager can access. The finance department cannot be accessed by the public and may only be accessed by relevant staff members. Inventory Stock valuation takes place on a monthly basis and due to the nature of the product they sell, food that is past the expiry date needs to be thrown away. A computerized invertory system is used to record stock, and the manager isn't always able to update the system immediately This has caused instances where additional stock is ordered as the system is showing a shortage, however the stock has just not been recorded. The warehouse is understaffed and has only one worker and a Warehouse manager, Inventory is also recorded in computer by the Warehouse manager at the latest invoice price. The policy of the company is that a physical stock take is done every day. However, as the warehouse is understaffed, this only takes place when the warehouse manager finds any errors in the system. he company's antivirus has expired, and the software has not been updated since 2015. Th arehouse manager thinks this is the reason behind the errors in the inventory system. Version 1.1 5202 ASMT2 202020 Assessment 2 2.3 Explain four weaknesses aknesses with the controls that you have been able to identify E3 PC3.1,33 8 marks 2.4 As the auditor, you will assess that the internal control system is implemented correctly E3 PC3.3 3 and is effective by using tests of controls which concern of: marks 2.5 Explain the three types of tests of control you would use in this business. E3 PC3.3 6 marks Version 11 C6202 ASMT2 202020 Assessment As the new partner in the dating for you that Food Inc Ltd, use. You have been provided w the m o he s n st sales are cash sales, which means a lot of cash is on the premises of the com The supplier has an agreement with the sales manager that the ked if the sales manager provides them with the contact details of the customers unts manager banks the available cash daily. When the account manager leaves to cash, there is one assistant who oversees the office and records any cash that comes in as well as makes the necessary adjustments to the records. The account ho provided the assistant with handwritten procedures for authoring. controlling source documents. The assistant is the owner's daughter and she is in the process of completing her Advanced Diploma in Accounting The accounts manager completes a monthly budget and ensures that proper forecasting of costs is included. This has helped the business to remain having a positive bank balance. A monthly trial balance is also completed where source documents are checked. The accounts office has no cameras but there is a safe that only the owner and accounts manager can access. The finance department cannot be accessed by the public and may only be accessed by relevant staff members. Inventory Stock valuation takes place on a monthly basis and due to the nature of the product they sell, food that is past the expiry date needs to be thrown away. A computerized invertory system is used to record stock, and the manager isn't always able to update the system immediately This has caused instances where additional stock is ordered as the system is showing a shortage, however the stock has just not been recorded. The warehouse is understaffed and has only one worker and a Warehouse manager, Inventory is also recorded in computer by the Warehouse manager at the latest invoice price. The policy of the company is that a physical stock take is done every day. However, as the warehouse is understaffed, this only takes place when the warehouse manager finds any errors in the system. he company's antivirus has expired, and the software has not been updated since 2015. Th arehouse manager thinks this is the reason behind the errors in the inventory system. Version 1.1 5202 ASMT2 202020