Question 10 You are the audit senior assigned to the audit of TeleBuz Limited (TeleBuz), an airtime wholesale company based in Johannesburg.

You obtain an understanding of the process followed by the company regarding its payroll function. TeleBuz purchases airtime in bulk from the different network providers in South Africa and also purchases printing paper in bulk upon which its clients print their airtime vouchers.

TeleBuz pays all its employees by electronic funds transfer. Before processing the payroll, the payroll clerk will run a report to compare the total payments processed for the period to the employee Masterfile.

Which one of the following programme controls best describes the process followed by the payroll clerk at TeleBuz?

Select one:

a.

Reasonableness check

b.

Cross cast test

c.

validation check

d.

Matching test

Question 11

You are the audit senior assigned to the audit of TeleBuz Limited (TeleBuz), an airtime wholesale company based in Johannesburg.

You obtain an understanding of the process followed by the company regarding its inventory management. TeleBuz purchases airtime in bulk from the different network providers in South Africa and also purchases printing paper in bulk upon which its clients print their airtime vouchers.

The internal audit section at TeleBuz identified the following control weakness:

When the paper deliveries are received, the boxes are packed in a corner of the warehouse from where it will be despatched. The despatch area is accessible to both courier companies as well as clients who come to collect their stock.

Which one of the following risks is the greatest risk due to the above weakness at TeleBuz?

Select one:

a.

The inventory could be stolen, and the boxes resealed.

b.

The inventory is not physically stored in the correct manner.

c.

The inventory could be inaccurately recorded in terms of quantities.

d.

The inventory could be moved without authorisation.

Question 12 Which one of the following alternatives can be regarded as the best internal control to implement to mitigate the risk of goods received from suppliers not being transferred into the warehouse?

Select one:

a.

No movement of inventory should take place without a goods received note and material issue note.

b.

No movement of inventory should take place without a material requisition form from the warehouse.

c.

No movement of inventory should take place until the delivery note has been agreed to the invoice.

d.

No movement of inventory should take place until the goods received note has been compiled for inventory received

Question 13

One of the perks of your job is that you have access to the companys computer facilities. If you were to use the companys computer processing facilities to run private accounting jobs without the permission of the companys management, what would this constitute?

Select one:

a.

An omission of the use of company assets

b.

None of the above.

c.

A misappropriation of the company assets

d.

The computer usage is negligible, therefore irrelevant.