Question
You are the audit senior assigned to the audit of TeleBuz Limited (TeleBuz), an airtime wholesale company based in Johannesburg. You obtain an understanding of
You are the audit senior assigned to the audit of TeleBuz Limited (TeleBuz), an airtime wholesale company based in Johannesburg. You obtain an understanding of the process followed by the company to pay their suppliers. TeleBuz purchases airtime in bulk from the different network providers in South Africa and also purchases printing paper in bulk upon which its clients print their airtime vouchers. As part of the accounting for transactions, the creditors clerk captures all invoices as soon as they are received from network providers as well as the printing company to ensure that invoices are paid timeously. The invoices are uploaded onto the system and routed to the finance director for approval. The creditors clerk will then reconcile the supplier statement with the suppliers account in the creditors Masterfile. Which one of the following alternatives best describes the control activity achieved by the above- mentioned procedure performed by the creditors clerk at TeleBuz? A. Performance review Isolation of responsibility C. Comparison and reconciliation D. Logs and reports
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