Question Two $(20$ Marks$)$

$2\mathrm{.}1.$ Describe the overall objectives of a company with regard to the acquisition of goods and the payment of

the goods acquired?

$(4$ marks$)$

$2\mathrm{.}2.$ Provide examples of how the misappropriation of company assets might be achieved in the acquisition

and payments cycle?

$(6$ marks$)$

$2\mathrm{.}3.$ Ominium $($Pty$)$ Ltd imports specialised golf equipment. At the financial year end, you selected a small

number of foreign creditors as part of your accuracy, valuation and allocation testing. Describe the

procedures you would carry out as the auditor to verify that the foreign creditors$$ balances have been

included at appropriate amounts?

$(5$ marks$)$

$2\mathrm{.}4.$ Herman Vangal an employee at Econ Holdings Ltd is undergoing a training workshop for a supervisory

position in the creditors section of the manufacturing company. He has asked you the following

question:What controls should be in place to prevent an employee calling up the creditors masterfile and

simply reducing the balance owed by say, a friend, or in fact deleting the creditors entire record from the

file?

$(5$ marks$)$