Question
You are a graduate auditor of the 3P Limited (3P) audit engagement. PART A You have documented the following internal controls in place in 3P.
You are a graduate auditor of the 3P Limited (3P) audit engagement.
PART A
You have documented the following internal controls in place in 3P. For each of the internal control procedures below, state the key assertion addressed for the corresponding account provided.
Account | Internal control | Key Assertion
(1) Payroll expense: Human resources department to notify payroll department of any promotions and their effective date
(2) Accounts payable: Supplier invoices are matched against quantities on receiving reports and contract prices prior to being paid
(3) Travel expenses: Travel expenses incurred by each employee are reviewed by the relevant department manager on a monthly basis and compared to employee's calendars and travel plans
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