AUI 3703 ASSIGNMENT 3

Question 1 of 2 25.0 Points Question 1 (25 marks) The Audit and Risk Committee of Department of Transport has mandated the internal audit activity to perform a preliminary investigation to determine whether there are any fraudulent activities in the Student Transport Programme funds. After a week of preliminary investigation, you had an informal progress meeting with the Manager: Internal Audit. He informs you that inadequate internal controls have not only given rise to the flooding of illegal operators but has also led to unnecessary fatalities on the road. In addition, there are several complaints from school principals regarding students arriving late at school, either because they were walking or due to vehicle break-downs. According to one of the principals, one morning a minibus arrived carrying 33 students in a 21-seater minibus. Furthermore, management does not require monthly reports on the Student Transport Programme. As a result, the responsible manager, Mr. Ruan Sabie does not show interest in addressing falsified claims by service providers on safety issues. Mr. Sabie only works with one staff member to assist in the division and does not show interest in recruiting additional staff members. Despite service providers being paid hundreds of thousands rands per month, there are false travel claims submitted for routes and pickup points that are not in the approved route list. The Risk M