Question 4 Substantive Tests - 20 Marks (a) Explain two differences between tests of controls and substantive tests. (5 marks) (b) During the year, your client Plush & Plastic made a significant investment in a new online ordering system so its customers could log on and place orders directly. The intention was to reduce the amount of manual input required and to streamline the goods despatch and warehousing processes. The system has had many problems leading to incorrect goods being delivered and incorrect stock levels being recorded, which in turn has led to poor purchasing decisions being made. This has led to many customer complaints and returns of goods. (i) Identify and explain two key accounts at risk. For each account, identify one key assertion at risk. (5 marks) (ii) For each assertion, describe one substantive test of detail that you would undertake. (5 marks) (iii) Given Plush & Plastic s situation, explain how the company can use credit memos to manipulate sales, and how auditors can detect such potential misstatements. (5 marks)