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QUESTION 4 ( 1 5 Marks ) 4 . 1 . You are the auditor of Smelloil Ltd a large oil refinery situated in Durban.
QUESTION Marks
You are the auditor of Smelloil Ltd a large oil refinery situated in Durban. Whilst conducting analytical
review procedures during the planning of the audit, you identified a large increase in purchases for the
laboratory which monitors the quality of Smelloil Ltds products. Expenditure on quality control at Smelloil
Ltd is relatively high as the materials used in quality control are expensive.
Required: Describe the controls which should be in place at a companys receiving of goods department?
marks
Discuss briefly the auditors responsibilities relating to fraud in the acquisition and payment cycle? marks
Briefly describe the assertions in the acquisition and payment cycle relating to purchases? marks
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