Cape Wheel Pty $($Ltd$)$ operates the iconic Ferris wheel at the Cape Town Waterfront, a major attraction drawing both locals and tourists. Extract from the Revenue Cycle Description Visitors purchase tickets either online or at the on$-$site ticket booth. Each day begins with the on$-$site manager at Cape Wheel Pty $($Ltd$)$ verifying the cash float and recording it in the daily logbook$.$ The cash float is the predetermined amount of cash that is kept in the cash register to start the day, used to provide change to customers. The verification process involves counting the cash in the register at the start of the day to ensure that the amount matches the recorded float from the previous day's closing balance. The manager then records this amount in the daily logbook$,$ noting any discrepancies immediately. All ticket sales, whether online or in person, are tracked using a centralized point$-$of$-$sale $($POS$)$ system that automatically records every transaction. Online sales are confirmed via an email sent to the customer, with all details logged in the system. At the end of each shift, the on$-$site manager reconciles the cash collected with the sales recorded in the POS system. This involves counting the cash in the register, comparing it to the POS system's sales totals for the shift, and ensuring they match. Any discrepancies found during reconciliation are documented and immediately reported to the accounting department. To maintain security, the POS system restricts access by requiring each employee to use a unique user ID and password. Daily, the accounting team at Cape Wheel Pty $($Ltd$)$ reviews the reconciliation reports, comparing them with bank deposits and online payment confirmations. The financial controller then reviews a weekly summary of all sales and cash receipts, verifying that all funds have been properly deposited and that no variances exist. Additionally, an independent internal audit is conducted quarterly, during which auditors review the sales logs$,$ reconciliation reports, and bank statements to confirm that the revenue recorded matches the amounts deposited. Extract from the Purchases Cycle Description The company relies heavily on the timely procurement of various items such as spare parts for maintenance, safety equipment, and promotional merchandise. To manage its procurement process, Cape Wheel Pty $($Ltd$)$ uses an integrated software system that handles purchase orders, supplier management, and inventory tracking. When a department identifies a need for goods or services, a purchase requisition is created in the system and sent to the purchasing department for review. The purchasing department then verifies the necessity of the purchase by comparing it to the department$$s budget and current stock levels. Once approved, a purchase order $($PO$)$ is generated and automatically assigned a unique sequential number by the system to prevent duplication. This PO is then sent to the approved supplier, selected from a pre$-$approved supplier list maintained by the procurement team. Suppliers on this list are reviewed and updated annually based on performance, pricing, and reliability. Upon delivery of goods, the warehouse team receives the items and matches them against the PO and the supplier's delivery note. Any discrepancies are reported to the purchasing department for investigation. The received goods are logged into the inventory system, which automatically updates stock levels and sends a notification to the finance department for payment processing. Payment is only made after the finance department reviews and matches the invoice with the PO and goods received note. All documents related to the purchase, including the PO$,$ delivery note, and invoice, are digitally archived in the system for audit purposes Question $11\mathrm{.}1$ Refer to the section titled $$Extract from the Revenue Cycle Description$$ and: $1\mathrm{.}1\mathrm{.}1$ Identify the key controls present in the revenue cycle.$(5$marks$)1\mathrm{.}1\mathrm{.}2$ Explain for each key control identified what risk this control lowers to an acceptable level.$(5$marks$)1\mathrm{.}1\mathrm{.}3$ Formulate the tests of control you will perform when testing the identified key controls. $(5$marks$)$ Present your answer using the following structure i$)$ Key Controls Identified, ii$)$Risk Lowered to Acceptable Level, iii$)$Tests of Control Question $22\mathrm{.}1\mathrm{.}1$ Identify the key controls present in the purchases cycle. $(5$marks$)2\mathrm{.}1\mathrm{.}2$ Explain for each key control identified what risk this control lowers to an acceptable level. $(5$marks$)2\mathrm{.}1\mathrm{.}3$ Formulate the tests of control you will perform when testing the identified key controls.$(5$marks$)$