1.  Describe how you will review the purchases and payments system. (consider a good purchase and payment system in a big organization).

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Axon Bhd employs several hundred employees at its production site, so that there are adequate personnel for segregation of duties for the purposes of internal control. You are the auditor of Axon Bhd. Your audit supervisor has asked you to perform an audit of the purchases and payments system for the year ending 30 June 2021. As part of this audit you are expected to conduct a review of the system, evaluate the effectiveness of the design of internal controls, make a preliminary assessment of the control risk, carry out tests of controls and finally perform a review of the preliminary assessment of control risk. Axon Bhd employs several hundred employees at its production site, so that there are adequate personnel for segregation of duties for the purposes of internal control. You are the auditor of Axon Bhd. Your audit supervisor has asked you to perform an audit of the purchases and payments system for the year ending 30 June 2021. As part of this audit you are expected to conduct a review of the system, evaluate the effectiveness of the design of internal controls, make a preliminary assessment of the control risk, carry out tests of controls and finally perform a review of the preliminary assessment of control risk.

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To review the purchases and payments system of Axon Bhd I would follow a systematic approach that includes the following steps Understanding the Syste... View the full answer