Read the Case Study below and answer ALL of the questions that follow.

TechSavvy $($Pty$)$ Ltd$.$ is a prominent electronics retailer based in Johannesburg. The company specializes in selling a range

of electronics, including smartphones, laptops, gaming consoles, and home appliances. With a robust online platform and

several brick$-$and$-$mortar stores across South Africa, TechSavvy imports branded electronics from international

manufacturers in Asia and Europe. Additionally, they have recently started offering exclusive tech gadgets from emerging

South African tech startups, such as innovative solar$-$powered chargers and smart home devices.

Financial Information:

$$ During the financial year, TechSavvy $($Pty$)$ Ltd$.$ reported purchases amounting to R$70$ million.

$$ The year$-$end trade payables balance stood at R$11$ million, a $25\%$ increase from the previous year.

$$ A significant deal was entered into with a new local supplier, "Mzansi Innovations," for an exclusive range of ecofriendly

smart home devices. This deal alone accounted for purchases of R$7$ million.

$$ TechSavvy $($Pty$)$ Ltd$.$ capitalized on early settlement discounts with several suppliers, especially those from Asia, and

entered into a few extended payment agreements for high$-$value purchases, like premium gaming consoles and highend

laptops.

$$ The company utilizes a state$-$of$-$the$-$art ERP system $($Enterprise Resource Planning$)$ for its accounting and inventory

management.

Other Relevant Information:

$$ There have been instances in the past where electronics, especially smartphones and laptops, received at the

Durban port were not recorded promptly in the system due to customs and logistical challenges.

$$ The finance team underwent a restructuring mid$-$year, leading to some temporary disruptions in the accounts payable

process.

$$ TechSavvy $($Pty$)$ Ltd$.$ has a centralized purchasing department in Cape Town, but the receipt of goods, especially the

locally sourced innovative gadgets, happens at various store locations and warehouses across the country.

$$ The company is planning a significant marketing campaign for the exclusive products sourced from

Mzansi Innovations, especially targeting the Gauteng and Western Cape markets.

Question $1(15$ Marks$)$

Based on the provided information, draft substantive audit procedures to address the key audit areas related to purchases

of TechSavvy $($Pty$)$ Ltd$.$ For each procedure you write down, indicate which assertion you are covering with that audit

procedure.

Answer using the following format:

Substantive Audit Procedure $-$ Purchases Assertion

You will receive $1$ mark for each valid audit procedure addressing the purchases class of transactions. You will receive

another mark for identifying the correct assertion covered by each audit procedure.Question $2(15$ Marks$)$

Based on the provided information, draft substantive audit procedures to address the key audit areas related to Trade

Payables of TechSavvy $($Pty$)$ Ltd$.$ For each procedure you write down, indicate which assertion you are covering with that

audit procedure.

Answer using the following format:

Substantive Audit Procedure $$ Trade Payables Assertion

You will receive $1$ mark for each valid audit procedure addressing the purchases class of transactions. You will receive

another mark for identifying the correct assertion covered by each audit procedure.