You are an audit supervisor of Owen & Co and you are reviewing the documentation describing Sonic Publishing Co.s purchases and payables system in preparation for the interim and final audit for the year ending 30 September 2019. The company has twenty bookshops and a warehouse, which holds the majority of the companys inventory. Your firm has audited Sonic Publishing Co for a number of years and as such, audit documentation is available from the previous years file, including internal control flowcharts and detailed purchases and payables system notes. As far as you are aware, Sonic Publishing Co system of internal control has not changed in the last year. The audit manager is keen for the team to utilise existing systems documentation in order to ensure audit efficiency. An extract from the existing systems notes is provided below Extract of purchases and payables system Procurement managers are responsible for ordering books for their shop. It is not currently possible for procurement managers to request books from any of the other nine stores. Customers who wish to order books, which are not in stock at the branch visited, are told to contact the other stores directly or visit the company website. As the inventory levels fall in a store, the store procurement raises a purchase requisition form, which is sent to the central warehouse. If there is insufficient inventory held, a supplier requisition form is completed and sent to the purchase order clerk, Oliver Tembo, for processing. He sends any orders above N$500 for authorisation from the purchasing director. Receipts of goods from suppliers are processed by the warehouse team, who agree the delivery to the purchase order, checking quantity and quality of goods and complete a sequentially numbered goods received note (GRN). The GRNs are sent to the accounts department every two weeks for processing. On receipt of the purchase invoice from the supplier, an accounts clerk matches it to the GRN. The invoice is then sent to the purchase ordering clerk, Oliver, who processes it for payment. The finance director is given the total amount of the payments list, which she authorizes and then processes the bank payments. Due to staff shortages in the accounts department, supplier statement reconciliations are no longer performed. 3.1 Briefly describe the term Substantive procedures. (5 marks) 3.2 Identify and explain 5 areas in the purchase and payables system at Sonic Publishing Co. that lack internal controls. (10 marks) 3.3 Describe substantive procedures the auditor should perform to obtain sufficient and Appropriate evidence in relation to Sonic Publishing Co.s purchases and other expenses. (15 marks)