You are the audit senior at Zong & Zhang and are conducting the audit of Biggs Proe (Biggs) for the year ended 30 June 2021. Biggs is an online retailer of bags, with business booming during the coronavirus pandemic. As per the audit plan, the junior auditor has undertaken tests of controls over the B2C sales system, selecting a sample from the sales journal to test whether:

i. the order details are confirmed by the buyer before the sale is finalised and processed;

ii. the credit/debit card details provided by the buyer are verified before the sale is finalised and processed;

iii. the online sales are interfacing with the general ledger sales account as intended;

iv. the shipping of goods was triggered by the sale being finalized.

Required:

a. For each of the above tests, explain the purpose/objective of the control.

b. For control (i) above, explain:

• how the auditor could test the control;
• what the result would be if the control was working as intended;
• what the result would be if the control was not working as intended.

c. For control (ii) above, explain:

• how the auditor could test the control;
• what the result would be if the control was working as intended;
• what the result would be if the control was not working as intended.

Answer rating: 100% (QA)

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