All Questions are compulsory and must be attempted Question 1 Chad is an auditor having satisfactory quality control review rating issued by the Zambia Institute of Chartered Accountants ZICA. He has been appointed as an auditor of Pangani manufacturing. He has started work under the Company's internal audit department and obtains assertions from different executives and employees of the Company. After going through a preliminary assessment of the company's control environment, Chad feels that there is a problem in the working of internal control system in handling the sales and receivables, purchases and payables, and the payroll units. Now, he is planning to check the internal control procedures and test the control procedures. Required: a) Describe the sales, purchases and the payroll systems that are expected to be found in a well-established company of your choice. b) Describe the control objectives and control procedures that are likely to be existent at every stage of the systems described in (a) above. c) Describe the test of controls that you as an auditor of the company would perform to ascertain the operating effectiveness of the control procedures identified in (b) above. d) Describe the typical assignments that the internal auditors would carry out in the company identified in (a) above. e) Describe how the internal auditors may enhance the effectiveness of the corporate governance practices in a company. Note: Chose an already established company that trades in buying and selling to help you answer the questions above. Marks will be split equally among the questions (Total: 100 marks)