Auditing

Question 2 10 Marks You are the auditor of Water Bucks Limited ("Water Bucks"). The company makes use of a batch input system to process the transactions in an integrated accounting system. During the audit of trade receivables and sales, you were assigned to perform walk-through tests on the trade receivables and sales application program for the year. The following errors were detected: 1. An invoice was identified, on which the VAT number of a client had not been not entered into the system. 2. The price of an item on one of the invoices was incorrectly entered into the system as R1 599.95. The maximum selling price of any item is R1 000.00. 3. The number of items purchased on one invoice was incorrectly reflected as 21 . The lowest number of items that can be purchased is 1 and the maximum is 20 items. 4. The customer account number field on a sales invoice contained alphabetic characters instead of numeric characters. 5. The customer account number on two sales invoices was six digits instead of seven digits. Required: Identify and describe a programmed (automated) application control which could be used to prevent these errors