Question $5$

$(15$ marks total$)$

Internal Control

Cruisy Cruizes Limited operates a bus service between South Island tourist

locations. Passengers can obtain tickets from the head office in Queenstown or from

backpacker hostels who act as agents in some of the locations. Passengers can also

pay direct to the driver when boarding the bus at locations where there is no local

agent.

Required:

$($a$)$ Describe FIVE possible control features that would provide control over the

"Completeness and Accuracy" of passenger revenue. For each feature

explain its benefit.

$(10$ marks$)$

$($b$)$ Explain the FOUR different types of tests of controls and what audit

evidence is a 'test of controls' seeking to obtain.