You currently working as a Senior Auditor at ABC Auditors and have been assigned to the audit of Afrisave Ltd (Afrisave) for the financial year ending 31 December 2023. Afrisave is a manufacturing and distribution company that is listed on the Johannesburg Stock Exchange (JSE). Afrisave has been a long-standing client of ABC Auditors. The Head Office and manufacturing plant of Afrisave are situated in Belville, in the Western Cape. Afrisave has distribution warehouses in Mpumalanga and Gauteng. There is a Branch Manager at every distribution warehouse. Afrisave is planning to open more distribution warehouses in other provinces in the coming months. Accounting responsibility lies with Head Office and is computerised. The company also has an internal audit department. Each distribution warehouse has its own perpetual inventory record system. Afrisaves product range includes canned food. During the 2023 financial year, Afrisave also introduced its baby range to secure more sales. Acquisition and Payment Cycle: The audit team is currently busy with the audit of the acquisition and payment cycle. The following notes were made by the First Year Audit Clerks: Raw materials are purchased from Horizon Suppliers, other consumable products are purchased from various suppliers, and all inventory is kept in the distribution warehouses. The warehouse personnel consists of a Warehouse Manager and five Warehouse Clerks. The Warehouse Clerks place orders when an inventory item reaches a quantity of less than 25 units. Orders are placed over the phone to the supplier. Once the raw materials arrive at the warehouse, one of the Warehouse Clerks compares the raw materials to the delivery note and then places the raw materials in the Warehouse. The delivery note is signed and filed. The Warehouse Manager then updates inventory records. Each warehouse has a dedicated Accountant that operates from the Head Office and all payments to suppliers are done centrally at the Head Office. Creditors: Below find a creditors reconciliation of Horizon Suppliers: Balance due per creditors statement of Horizon Suppliers as at 31/12/23: R345 895.60 Invoice 112 was in error a duplicate of Invoice 111 (R18 255.65) Invoice 158 return as the items was not suitable for Afrisave. (R7 562.00) EFT to Horizon Suppliers for Invoice 99 that does not appear on the account statement (R150 000.00) Balance according to the creditor ledger as at 31/12/23 R 170 077.95 REQUIRED: 2.1 Indicate the internal controls that you will recommend to Afrisave Ltd in the acquisition system regarding the following: Placing orders Receiving raw materials (20 marks) 2.2 Formulate the substantive procedures your audit team will perform on the above-mentioned creditors reconciliation. (30 marks) 2.3 Formulate the substantive audit procedures you would perform to obtain sufficient and appropriate audit evidence regarding the accuracy, allocation, and valuation of all inventory at Afrisave Ltd. Restrict your answer to raw materials, and work in progress