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.

TeleBuz places orders for printing paper with the supplier once they have orders of 50 boxes per network. Sales representatives are required to obtain client orders and capture these on an excel spreadsheet. The customer name and the number of boxes per network is captured on the spreadsheet. At the end of the week, the sales manager e-mails all sales representatives to obtain the total number of boxes for which they have received orders. Should this reach the required reorder level of 50 boxes, an order is placed with the supplier.

Which one of the following alternatives is the major control risk as a consequence of the process followed for ordering boxes of paper at TeleBuz?

Select one:

a.

Ordering from an unauthorised supplier.

b.

Ordering of incorrect or unnecessary goods.

c.

No authorisation to place orders.

d.

Orders may not be placed timeously