At each distribution centre and grocery store, the purchasing and receiving team consists of the head of purchasing, buyers, purchasing clerks and receiving clerks. RAPS uses the procurement module on PAS Software and staff members have access only to the specific module on the software for which they are responsible. System descriptions for the activities in the acquisition and payment business process are included below. Placing of orders The ordering function of PAS Software is linked to the list of approved suppliers and standard price list; therefore, the required information is automatically populated when needed. To obtain access to the ordering function, the purchasing clerk enters his/her unique username and password. The clerk then enters the supplier code whereafter a standard order form appears with details of the supplier. The clerk selects the description of the items to be ordered through predictive text, where he/she starts typing the description and then the full description is displayed which can be selected. The clerk then enters the quantity of the items to be ordered. The price of the items is automatically populated, and the total of the order is calculated by the system. The system checks that entered fields comply with automated pre-existing computer checks and that all fields are completed. The order is then confirmed and placed with the supplier. Delivery of goods All goods are delivered in the dedicated receiving area. Two receiving clerks are present when receiving goods and they compare the quantity and description of the physical products with the delivery note received and the original order form. They also check the quality to confirm that goods are received in good condition and they prepare the goods received note (GRN) accordingly, after which the GRN is signed electronically by both clerks, and the items are moved to the storage area. Recording of purchases, making payments to creditors and preparing creditors reconciliations In the accounting department, assistant accountants capture the purchase invoices received from suppliers on the system, from where the purchase journal entries are automatically posted to the creditor's account in the creditors and general ledger. The system automatically matches the captured invoice with the relevant GRN and order on the system. Once the documents have been matched, the system flags them as ready to be paid. Jessica Smutz prepares monthly creditors reconciliations and compares the balance payable with the outstanding balance according to the supplier statements received. She investigates all adjustments to the creditor's balance on the PAS Software, making notes to explain each reconciling item. Sarah Ncombe reviews the reconciliation monthly and approves it with her electronic signature on the system. Electronic payments are made on the last business day of the month. Based on these payments, cashbook journal entries are automatically posted to the creditor's account and the cashbook balance in the general ledger. The following is an example of a creditor's reconciliation that has been selected for detail testing at year end: Note 1: The payment was made on 30 September 2023. Note 2: The original order was for 200000 bags of sugar. The items that were sent back relates to 20000 bags of sugar that were received in poor condition (Order 3100 and GRN 3200). Note 3: Goods were delivered on 27 September 2023 (GRN 3278) You have already performed the following substantive procedures on the creditors reconciliation of Selati: 1.1 Agree the closing balance of R350 000 in the creditors reconciliation with the creditor's account in the creditors ledger. 1.2 Inspect the account in the creditor's ledger for any abnormal or unusual entries. 1.3 Reperform the calculations and test the logic of the Selati's creditors reconciliation. With reference to working paper C001: Formulate the additional substantive procedures that you will perform on the creditors reconciliation of Selati as at 30 September 2023, to test whether the reconciliation is relevant and reliable as audit evidence. Communication skills - appropriate style At each distribution centre and grocery store, the purchasing and receiving team consists of the head of purchasing, buyers, purchasing clerks and receiving clerks. RAPS uses the procurement module on PAS Software and staff members have access only to the specific module on the software for which they are responsible. System descriptions for the activities in the acquisition and payment business process are included below. Placing of orders The ordering function of PAS Software is linked to the list of approved suppliers and standard price list; therefore, the required information is automatically populated when needed. To obtain access to the ordering function, the purchasing clerk enters his/her unique username and password. The clerk then enters the supplier code whereafter a standard order form appears with details of the supplier. The clerk selects the description of the items to be ordered through predictive text, where he/she starts typing the description and then the full description is displayed which can be selected. The clerk then enters the quantity of the items to be ordered. The price of the items is automatically populated, and the total of the order is calculated by the system. The system checks that entered fields comply with automated pre-existing computer checks and that all fields are completed. The order is then confirmed and placed with the supplier. Delivery of goods All goods are delivered in the dedicated receiving area. Two receiving clerks are present when receiving goods and they compare the quantity and description of the physical products with the delivery note received and the original order form. They also check the quality to confirm that goods are received in good condition and they prepare the goods received note (GRN) accordingly, after which the GRN is signed electronically by both clerks, and the items are moved to the storage area. Recording of purchases, making payments to creditors and preparing creditors reconciliations In the accounting department, assistant accountants capture the purchase invoices received from suppliers on the system, from where the purchase journal entries are automatically posted to the creditor's account in the creditors and general ledger. The system automatically matches the captured invoice with the relevant GRN and order on the system. Once the documents have been matched, the system flags them as ready to be paid. Jessica Smutz prepares monthly creditors reconciliations and compares the balance payable with the outstanding balance according to the supplier statements received. She investigates all adjustments to the creditor's balance on the PAS Software, making notes to explain each reconciling item. Sarah Ncombe reviews the reconciliation monthly and approves it with her electronic signature on the system. Electronic payments are made on the last business day of the month. Based on these payments, cashbook journal entries are automatically posted to the creditor's account and the cashbook balance in the general ledger. The following is an example of a creditor's reconciliation that has been selected for detail testing at year end: Note 1: The payment was made on 30 September 2023. Note 2: The original order was for 200000 bags of sugar. The items that were sent back relates to 20000 bags of sugar that were received in poor condition (Order 3100 and GRN 3200). Note 3: Goods were delivered on 27 September 2023 (GRN 3278) You have already performed the following substantive procedures on the creditors reconciliation of Selati: 1.1 Agree the closing balance of R350 000 in the creditors reconciliation with the creditor's account in the creditors ledger. 1.2 Inspect the account in the creditor's ledger for any abnormal or unusual entries. 1.3 Reperform the calculations and test the logic of the Selati's creditors reconciliation. With reference to working paper C001: Formulate the additional substantive procedures that you will perform on the creditors reconciliation of Selati as at 30 September 2023, to test whether the reconciliation is relevant and reliable as audit evidence. Communication skills - appropriate style