Question 15 of 30 2 Points Starlight Wholesalers Ltd is a manufacturer of branded sneakers for retail stores. The audit senior has requested that you attend the year-end inventory count. At the year-end inventory count you observe that the warehouse controller accepts the number of items counted and amends the perpetual inventory records based on the count sheets to reflect the items on hand at the end of the count. Which one of the following alternatives describes the main risk that exists as a result of the above-mentioned actions of the warehouse controller's conduct during the inventory count? OA. There could be misplacement of inventory items. OB. Inventory shortages, including theft, are concealed. OC. There is unauthorised requisitioning of materials. OD. Transfers are recorded that did not take place. Reset Selection Question 16 of 30 2 Points Starlight Wholesalers Ltd (Starlight) is a manufacturer of branded sneakers for retail stores. The following are the steps Starlight follows for the receipt of all goods ordered. Goods ordered are delivered in cargo containers that display the item code and quantity on the outside of the container, and accompanied by the supplier delivery note indicating the description and quantity of goods. When a delivery of goods arrives, the security guard opens the gate and directs the driver to the "receiving area, which is attached to the warehouse. Which one of the following alternatives describes the main security risk that can be identified from the above-mentioned steps Starlight follows for the receipt of goods ordered? OA. The receiving area is not separate from the warehouse. OB. Entry to the premises is not controlled/maintained using a register. OC. The goods are delivered in cargo containers so they cannot be viewed. OD. The supplier delivery note may not agree to the goods delivered Reset Selection Question 17 of 30 2 Points Starlight Wholesalers Ltd employs more than 70 employees at its factory in Wynberg. The following is a risk in the payroll and personnel cycle. There is no system for the appointment of warehouse personnel. Which one of the following alternatives describes the best internal control activity that can be implemented to address the above- mentioned risk in the payroll and personnel cycle? OA. The appointment of staff should be based on job creation. OB. The appointment of staff should be based on an interview. OC. The appointment of staff should be based on resignations. OD. The appointment of staff should be based on the needs the warehouse Question 18 of 30 2 Points South Africa. Protea's governance structure consists of the board of directors, assisted by four committees, namely the audit, remuneration, risk governance and nominations Protea Limited (Protea) is the largest distributor of consumer goods, general merchandise, home improvement equipment and is a wholesaler of basic foods committees. The following information concems individuals on Protea's Board of Directors, as at 29 February 2020: Director Mr S kolisi Officer Notes Position Mr Kolisi had been appointed to the position of CEO of Protea, on 1 July Chief Executive 2007, and he also served as a member of the Audit Committee of Protea (CEO) for a number of years. Mr Kolisi and Mr Bokkie are the two members serving on the Audit Committee Choose the alternative that correctly indicate the committees that Mr Kolisi, as the CEO, is allowed to be a member of, in terms of the King IV Report: 1. Nominations committee 2. Remunerations committee 3. Risk governance committee 4. Social and ethics committee O A. 1 and 4 B. 1 and 2 OC. 2 and 3 OD. 3 and 4 Reset Selection
