+ You are asked to audit Galaxy's control activities related to cash payment. You noticed the following control procedures for cash payment: 1. When making cash payments to suppliers, the assistant accountant is required to check whether there is a matching purchase order, and whether the ordered goods are received. 2. The assistant accountant is required to submit the purchase order, invoice, and the goods receipt record to the supervisor for approval. | (1) For the two controls identified above, describe the purpose of the control-what is the control designed to prevent or detect? (3 marks) Internal Control Purpose (what is the control designed to prevent or detect) 1. When making cash payments to suppliers, the assistant accountant is required to check whether there is a matching purchase order, and whether the ordered goods are received 2. The assistant accountant is required to submit the purchase order, invoice, and the goods receipt record to the supervisor for approval. (ii) Identify the account(s) and assertion(s) that this control will have an effect on in the financial report (3 marks) Internal Control Account(s) and Assertion(s) Influenced 1. When making cash payments to suppliers, the assistant accountant is required to check whether there is a matching purchase order, and whether the ordered goods are received Page 6 of 11 Trimester 3, 2020 Examination 2. The assistant accountant is required to submit the purchase order, invoice, and the goods receipt record to the supervisor for approval. (iii) Provide one example of a procedure that could be used to test the control. (3 marks) Internal Control Procedure to test internal control 1. When making cash payments to suppliers, the assistant accountant is required to check whether there is a matching purchase order, and whether the ordered goods are received 2. The assistant accountant is required to submit the purchase order, invoice, and the goods receipt record to the supervisor for approval