Question 2 a) Questions 1 through 8 are typical internal control questionnaires used for purchases and payment cycle. 1. Do personnel who are independent of the receiving and shipping functions and the payables and disbursing functions perform the purchasing function? 2. Are all receiving reports pre-numbered and the numerical sequence checked by a person independent of cheque preparation? 3. Does the mailroom route all vendors' invoices directly to accounting department? 4. Does a responsible employee review and approve the invoice account distribution before the transaction is entered in the computer? 5. Are all extensions, discounts, and freight terms on vendors' invoices check for accuracy? 6. Are cheques automatically posted in the cash disbursements journal as they are prepare 7. Are all supporting documents properly cancelled at the time the cheques are signed. 8. Is the custody of checks after signature and before mailing handled by an employee independent of all payable, disbursing, cash, and general ledger functions? Required Select any Five (5) out of the above eight (8) internal control questions, and i. Identify the nature of the potential financial misstatements 5 marks ii. Recommend a substantive test for transaction to detect the material misstatement identified. 10 marks