Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item.

Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number
11
First four letters of nominal account name (entered on invoice by purchase department
manager)
Nominal account code (entered by purchase department manager)
Date
Goods inward note number Net amount
VAT amount Gross amount

Required:
a) Suggest manual operation and controls which might previously have applied to these invoices.
(6 marks)

b) Suggest input controls that might be applied by the program to these items. (8 marks)

c) List some audit tests that could be applied to these items indicating the purpose of each test and the relevant audit evidence obtained.
(6 marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below A Suggest manual operation and controls which might previously have applied to these invoices The purchase department manager would check t... View the full answer