You work at a company as an entry level internal auditor. Your manager wants to check the completeness of the audit trail for the purchase of a very expensive asset, which is expected to have a big impact on the way the company does business.

Typically, this sort of decision requires a request for tender to be approved. (A request for tender (RFT) is a document put out by the purchaser, letting relevant suppliers know about the opportunity. Suppliers will bid to sell their produce to the customer. In their response to the RFT, interested suppliers have to demonstrate how their product meets the customer's requirements and budget. By way of background, it is normal for the purchaser and supplier to change the specifications before and after the original contracts are signed. This will have an impact on the cost.)

Required25 marks

As stated above, your manager wants you to check the completeness of the audit trail for this acquisition. She wants you to identify the sorts of documents you would request access to. She also wants you to specify the sorts of evidence you would look for on those documents. Your manager is only interested in the audit trail that relates to the financial statements.