?QUESTION $3$

The intemal audit function has been recently established and therefore management is

unfamiliar with the terms "controls" and "control processes".

Thabo Ndlowu explained to management that controls should be established to encompass all

management responses to risk. Controls are derived from the way management runs the

company and should be integrated into all business processes at every level of the company.

REQUIRED

Marks

$3\mathrm{.}1$ ?Differentiate between control and control processes as defined by the Institute

of Intemal Auditors $($IIA$).$

Part B

Sun$-$look Ltd recently experienced an increase on their online sales platform. Online sales

consist of sunglasses ordered by both individuals and shops. Due to the increase in online

sales Sunglass$-$look Ltd had to expand and upgrade their current sales platform.

Management requested Thabo Ndlow, the internal audit manager to perform an audt on the

newly implemented online sales platform.

Amani Naidoo assisted Thabo with the audit. Amani obtained copies of the organisational

charts applicable to the sales process. She also read through all the relevant policies and

procedures applicable to the new sales platform.

Amani listed the following controls:

$1$ ?Passwords.

$2$ ?Performance reviews.

$3$ ?Segregation of duties.

$4$ ?Physical stock count.

$5$ ?Policies and procedures.

$6$ ?Insurance.

$7$ ?Authorisation of program changes.

$8$ ?Ethical tone at the top.

$9$ ?Training programmes.

$10$ ?Online sales platform literacy test.

REQUIRED

$3\mathrm{.}2$ ?Differentiate between preventive, detective, and directive controls.

$3\mathrm{.}3$ ?Draw up a table and classify whether the controls listed above $(1-10)$ ?is a

preventive, detective, or directive control.