ompuisory question in the answer booklet Question 1 You are the audit company manufactures custom-made furniture and its year en supervisor of the year-end audit of a client called Redwood Ltd. This private planning of this year's audit, you need to evaluate the effectiveness of system. So far you have ascertained the following facts d is 30 June. During your When production supervisors require raw materials, such as wood, glue and screws complete an electronic requisition form, which can be found on the company's intranet. The requisition form is then sent to the Purchasing Department. The requisition forms are not sign and no reference is made to the current inventory levels of the materials being requested Staff in the Purchasing Department use the requisition forms to raise sequentially numbe purchase orders based on the approved suppliers list, which was last update red The Purchasing Director authorises the orders prior to them being sent to the compa suppliers The Warehouse Department venifies the quantity received by checking it against the suppliers despatch note and also checks that the quality of the goods received is satisfactory. The warehouse staff then complete a sequentially numbered goods received note (GRN) and send a copy of it to the Finance Department Purchase invoices are sent directly to the purchase ledger clerk, who stores them in a manua file until the end of each week. She then inputs them into the purchase ledger using batch contro sanda ves eachinvoce a unique num berbased on the supplier code The noces are reviewed and authorised for payment by the finance director, but the actual payment is only made 60 days after the invoice is input into the system Required (a) Evaluate a method that auditors could use for ascertaining and documenting Redwood's purchase system. (b) State FOUR control objectives of Redwood's purchase system. (c) Identify FOUR deficiencies in Redwood's purchase system, suggesting how the (2 marks) (4 marks) company can remedy each deficiency (12 marks) -S Question 1 is continued on the next page