. Extract from Cash Disbursement Control Activities

The audit team has noted the following cash disbursement control procedures:

(a) All payments prepared by the clerk include a pre-numbered bank transfer requisition.

(b) The bank transfer requisition requires the clerk to confirm that they have performed the following procedures for each payment: - checked the additions and prices on the invoice - confirmed the details on the invoice have been matched to a delivery note by the warehousing department - verified a valid purchase order exists for the goods

(c) The clerk forwards the bank transfer requisition together with any supporting documentation (invoice and any other relevant correspondence) to the CFO for approval.

As the audit senior on the audit of Gamma Limited part of your review includes the review of control activities in the Cash Disbursement area. For each of the three procedures identified by the auditor:

a) Describe what the control activity is designed to prevent or detect - the purpose.

b) Identify the account(s) and the assertion(s) that the control activity will have an effect on in the financial report

c) Provide one example of a procedure that could be used to test the control activity.