During the planning of audits, auditors perform tests of controls. Below are examples of typical controls found in many businesses:

1. Bank reconciliation document showing bank balance and accounting balance with adjustments for timing differences.
2. Authorisation of payments made to suppliers by signature of senior manager on payment instructions raised by payments clerk
3. Organisational chart showing directors and staff reporting lines.

Required:

Write down tests of controls which would give some assurance as to the effectiveness of the three controls noted above. You should write at least one procedure for each control.

(10 marks)