internal auditing

a. Jamaican Grill is a company with twenty (20) fast food chains across Jamaica. You are currently apart of the aadit team for the financial year 30 March 2014. The following notes have been left for your attention by the audit senior: Our audit testing performed so far on trade payables revealed some intemal control deficiencies. Supplier statement reconciliations have not always been performed by the elient, and invoices were often not approved before payment. We have found a few errors in the payables ledger and the individual accounts of suppliers making up the trade payables balance, the total of which is material to the statement of financial position. Also we have found out that the payables clerk engaged in fraud amounting to JS3,500,000.00 from as early as January 2012. Required: i. What is your responsibility in respect of the above fraud? ( 6 marks) ii. State six fraud red flags that may have existed in this case? ( 6 marks) iii. Outline what further actions the auditor should take and the reporting requirements in respect of the internal control defieiencies identified. ( 6 marks) iv. Recommend four control activities that are crucial to the proper functioning of the payables department to the management of Jamaican Grill. (6 marks) v. Explain the term appropriate or competent evidence using examples applicable to the above case. (6 marks)