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Part 1 of 1 - Topic 6, 7, 8 & 9 Question 2 of 2 1.0 Points (20 Marks) TOPICS 6, 7, 8 & 9

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Part 1 of 1 - Topic 6, 7, 8 & 9 Question 2 of 2 1.0 Points (20 Marks) TOPICS 6, 7, 8 & 9 Relationship between the audit committee and the CAE 2.1 Discuss five (5) factors that could give rise to a poor relationship between internal auditors and external auditors. (5) Compilation of audit working papers 2.2 The information below was compiled by a trainee internal auditor, Samuel Naidoo, on 15 January 2021 and filed in an arch lever file, marked "IARM001". Samuel's file was reviewed by the senior auditor, Janine Moraba on 25 January 2021. You are part of the team that conducted audit in the finance section and Sarah tasked you to compile a proper working paper to serve as an example for Samuel. She also instructed that Samuel's details should reflect on the working paper because he compiled the information. Your audit working paper should indicate all the elements of a proper working paper. (15) "Out of a sample of 5 invoices, only 2 were approved by the financial manager for payment. I noted that the control over payment approval is ineffective as it could be processed for payment without approval, a finding is raised. The sample was taken from a list of 15 invoices received from the financial manager on 10 January 2021. The purpose of the testing was to verify that all payments made were approved by the financial manager. I inspected the invoice and payment instruction attached for the financial manager's signature. I then verified that the signature matches the specimen signature as per delegation of authority." The table below is evidence of my testing: Signature matches specimen X Invoice Payment Date of Amount Invoice No instruction payment in R properly no approved IR2003 7681 11-06-2020 2,600 INB230 7682 01-03-2020 5,500 INV050 7683 15-06-2020 16,301 X BES21 7684 19-08-2020 21.999 Q2001 7685 23-05-2020 12.890 X

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