Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your audit client AMP is a major Australian Wealth Asset Management company based in the Melbourne CBD, with offices across all Australian states and parts
Your audit client AMP is a major Australian Wealth Asset Management company based in the Melbourne CBD, with offices across all Australian states and parts of the Asia Pacific region including India, China and Indonesia. AMP employs just over 12,000 employees and is involved in providing several services including retail banking, provision of superannuation, financial advice, investments strategies, life insurance and property investment solutions. AMP's operations rely heavily on 3,000 financial advisors (agents) selling their products for a high fee and commission. During the audit you discovered the following issues:
Issue 1: Initial audit testing revealed several instances where AMP agents sold life insurance policies to customers, but they were not paid their 20% commission on the sales, as the commission rate was omitted when then sales were processed.
Issue 2: Initial audit testing revealed that over 400,000+ customers received interest rates applied to their mortgage loans well above the current 2.29% variable rate.
For each the above 2 issues identified in your audit, identify automated input controls would be MOST likely to have prevented the issues?
Issue 1: Initial audit testing revealed several instances where AMP agents sold life insurance policies to customers, but they were not paid their 20% commission on the sales, as the commission rate was omitted when then sales were processed.
Issue 2: Initial audit testing revealed that over 400,000+ customers received interest rates applied to their mortgage loans well above the current 2.29% variable rate.
For each the above 2 issues identified in your audit, identify automated input controls would be MOST likely to have prevented the issues?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
For Issue 1 Omission of commission rate on life insurance sales To prevent the omission of commission rates on life insurance sales the following auto...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started