Can I Please get help with this assignment 2 please attached

Question 1 List the principles of audit independence. Assess the following situations in light of these principles and describe what action must be taken, if any, to restore independence. Each of the four situations is independent of the others. ( a ) The internal audit department is conducting a review of the payroll function. One of the audit staff is attracted to a payroll clerk and they start dating outside work. ( b ) The senior internal auditor conducting a review of the purchasing function has found several weaknesses. He has recently moved house and wants to accept the offer by the purchasing manager of light fittings at trade discounts. The internal auditor decides not to report several weaknesses on agreement they will be rectified before the next review. ( c ) During an audit of the EDP department a junior auditor is approached by the department head and offered a job. Because the auditor considers that the role would be more financially rewarding he advises the department head that he is interested. The internal auditor completes the audit without finding any adverse findings and then submits a job application to the EDP department. ( d ) Following a successful period in the internal audit department, the audit manager applies for a Chief Auditor role with a competitor in the same industry. During the interview the company states that they would like their internal audit function run in the same way. They request that the auditor provides examples of audit programs and discrepancies found before making their decision. Question 2 Identify and explain a range of methods of work practices and routines relevant to internal control procedures. In your answer consider discuss the objectives of internal controls in at least two subfunctions of the revenue or expenditure cycles, explain the acronym CAVAS, and apply it to the subfunctions you have selected. Question 3 Up and At Them is a training organisation. It invoices customers when it provides training information and courses rather than collecting cash when services are provided. The responsibility for revenue and receivables is separated between three clerks as follows: A clerk responsible for the sale of training information, A clerk responsible for registration for training courses and A clerk responsible for donations received from benefactors. The three clerks report to an office manager who reports to the managing director. The office manager prepares regular accounting information from the integrated computer accounting system. When the mail arrives each morning the office manager opens and sorts the mail. Each clerk is then given the receipts that relate to their responsibilities. They prepare a batch total and enter the details into the computer accounting system. At 3pm a deposit list is printed from the integrated accounting system and one of the clerks takes all the receipts and the deposit list to the bank. The office manager approves bad debt write-offs. The managing director considers all the employees to be trustworthy but a number of factors have caused her to want to conduct an internal audit: She has heard that internal controls are very important. Sales have been low compared to previous periods. She needs to employ a temporary staff member to fill in for one of the clerks while on maternity leave. The managing director asks you to review the internal controls over sales and to provide suggestions for improvement. Required: ( a ) Draw a simple organisation chart of the current staff and list their responsibilities. ( b ) List the weaknesses that are apparent in the current processes. ( c ) Explain how processes may be changed so that controls provide reasonable assurance that cash receipts are accurately recorded. Question 4 The internal auditor of Hills Host Clothes Lines is conducting a review of the sales department. He finds that over the last 2 years the number of sales administration staff in the North Queensland branch has been reduced by half. It appears that the reduction from 8 clerks to 4 clerks is due to management targets of maintaining profit per employee. In the last management planning meeting it was felt that 4 clerks would be sufficient. The 4 clerks included 3 ex sales staff who wanted to change to an office job instead of continued travelling. In reducing staff numbers management considered it necessary to retain the experienced staff. Six months ago 2 of the experienced staff left for personal reasons and were replaced by junior clerks with no sales experience. Also the other remaining experienced clerk was promoted to supervise a sales region and was rarely in the administration office. The resulting vacancy has not been filled. Required ( a ) Discuss the attitudes of the management in reducing staff numbers. ( b ) Identify the risks that the internal auditor needs to take into account in the internal audit of the North Queensland sales function. Question 5 A branch office the Oblique Insurance Company consists of a branch manager and 5 clerical assistants. The branch manager reports to a division manager. The branch has its own bank account in which daily takings are deposited by the cashier at the end of each day. The cash register rolls are reconciled to these cash deposits by the sales clerk. Cheques are drawn from the bank account to pay branch suppliers. The cheques must be signed by either the branch manager or the regional manager. Expenditure reports are completed by the branch manager who then sends them to the regional office. Banks statements are received by the branch manager who performs the bank reconciliation on a monthly basis. Required (a) What control weaknesses are apparent. (b) Describe any risk of error or fraud. (c) Suggest appropriate improvements that can be made