While working on the audit of Casablanca Ltd, you are involved in a review of control activities in the cash disbursement area. As part of your review, you have noted the following procedures: All payments prepared by the clerk include a pre-numbered bank transfer requisition. The bank transfer requisition requires the clerk to confirm that they have performed the following procedures for each payment: checked the additions and prices on the invoice confirmed the details on the invoice have been matched to a delivery note by the warehousing department verified a valid purchase order exists for the goods. The clerk forwards the bank transfer requisition together with any supporting documentation (invoice and any other relevant correspondence) to the CFO for approval. Required:

For each of the three controls identified above: Describe the purpose of the control—what is the control designed to prevent or detect? 

Identify the account(s) and assertion(s) that this control will have an effect on in the financial report. 

Answer rating: 100% (QA)

There are three main types of internal controls detective preventative and corrective Controls are t... View the full answer