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Five Internal control deficiencies are listed below. For each deficiency. 1) identify a potential misstatement and 2) design a reliable substantive audit procedure targeting the

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Five Internal control deficiencies are listed below. For each deficiency. 1) identify a potential misstatement and 2) design a reliable substantive audit procedure targeting the potential misstatement identified. The internal control deficiencies are unrelated to each other. (10 marks) 1. The payroll accountant can add new records to the employee's Human Resource (HR) files, has full access to the salary expense account and makes salary payments. 2. To initiate the purchase process, a standard purchase requisition form is prepared by the warehouse and sent to the purchasing department. No approval is required for the purchase requisition form. 3. The accountant recognises transactions in the purchase journal when he sees the purchase order from the purchasing department and the purchase invoice from the suppliers 4. The company's purchase orders are pre-numbered, and their sequence is accounted for every week. However, the company has experienced a staffshortage since the start of the financial year and the sequence check is no longer performed 5. Since CovID-19 started, the ability for the clients customers to pay off the accounts receivable Is diminished, but the accounts receivable derk failed to take it into consideration when performing age analysis of accounts receivable. Five Internal control deficiencies are listed below. For each deficiency. 1) identify a potential misstatement and 2) design a reliable substantive audit procedure targeting the potential misstatement identified. The internal control deficiencies are unrelated to each other. (10 marks) 1. The payroll accountant can add new records to the employee's Human Resource (HR) files, has full access to the salary expense account and makes salary payments. 2. To initiate the purchase process, a standard purchase requisition form is prepared by the warehouse and sent to the purchasing department. No approval is required for the purchase requisition form. 3. The accountant recognises transactions in the purchase journal when he sees the purchase order from the purchasing department and the purchase invoice from the suppliers 4. The company's purchase orders are pre-numbered, and their sequence is accounted for every week. However, the company has experienced a staffshortage since the start of the financial year and the sequence check is no longer performed 5. Since CovID-19 started, the ability for the clients customers to pay off the accounts receivable Is diminished, but the accounts receivable derk failed to take it into consideration when performing age analysis of accounts receivable

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