2. Simons is a trader in the UAE and a long-standing customer of Pylon. He has AED 60,000 credit facility at his disposal. Simon currently has AED 24,000 outstanding payable on 28th February 2019 and has occasionally missed the deadline for payments. Simon recently made the following transactions with Pylon: Customer 1 Jan 2019 - Previous balance outstanding AED 24,000 1 Jan 2019 - Ordered electronic parts on purchase order 1123 50,000 1 Jan 2019-order processed by workers and packaged 2 Jan 2019-order dispatched by courier to Simons 20 Jan 2019 - invoice raised and sent to Simon with purchase order 1123 A junior manager approved the extended credit to Simons as they are close friends and the Junior manger trust Simons as they have known each other for past ten years. Company policy on exceeded credit limit Company policy is that a customer may occasionally go over the credit limit by no more than 10% of the total credit limit facility afforded to that customer. For example, if a customer has total credit facility of AED 40,000, they can be allowed to go over by no more than AED 4,000. However, two conditions are attached to this facility: 1. The customer must not have previously missed any payment deadlines 2. The increase over the credit limit is approved by a senior manager Required: a. Calculate the new balance outstanding at 2 January 2019 b. Identify and explain the weakness in credit control over Simons case from the scenario. c. Discuss the internal control procedures that should have been applied to Simons case and why there is a failure in respect of Simon d. Suggest three methods how Simons can be encouraged to pay his debt either early or within his credit facility timeframe (15 marks) INTERNAL CONTROL RELATED QUESTIONS 3. Discuss the robustness of the credit granting procedure in Pylon identifying any strengths and weaknesses that exist (7 marks) 4. Identify and discuss the audit evidence for sales in Pylon (6 marks) 5. Identify and explain the internal controls that currently exist in Pylon (6 marks) 6. Identify the weaknesses in internal controls that currently exist in the company (7 marks) 7. Identify and explain how internal control system could be improved in Pylon (7 marks) 8. Identify and explain how you would apply a Substantive test to Accounts Receivables (7 marks) 9. Identify and explain how you would apply a Test of control to Accounts Receivables (7 marks) 10. Discuss if any matters are of serious or material that could impact upon audit opinion (7 marks) 11. Identify and explain any issues of concern in the Cash transaction cycle and how this can be improved (6 Marks) Please pay particular attention to style, grammar and presentation of your report