For each of the following situations, describe the techniques you would use to gather evidence of the effective operation of the control or the accuracy of the information/accounting records AND identify audit procedures you would carry out using your chosen techniques:

a) A computerised sales system is supposed to produce error reports for items which have been ordered by customers but are out of stock. (2 marks)

b) The payroll services for your client have been outsourced during the year. You are concerned that the control of the process may have declined, increasing the risk of error. (3 marks)

c) Your client offers leadership and personal development training to aspiring senior managers. In order to protect valuable and attractive items (such as i-pads, cameras and virtual reality headsets) all such items are required to be stored or locked away out of sight outside of normal office hours. (2 marks)

d) A key supplier of your client's company has just been declared bankrupt. There is a risk that the company was overly reliant on this supplier and that it will have a devastating impact on the business going forward. (4 marks)

e) During discussions with the management team at your client you have been verbally informed that a receivables balance comprising 10% of the total value of year end receivables of 1.8m is fully recoverable. (2 marks)

f) The cashier's department a t your client is supposed to carry out a weekly bank reconciliation to ensure that the cash book is up to date and the balance on the bank ledger account is correct. (2 marks)

TOTAL 15 MARKS