ASSIGNMENT 2
SEMESTER 2
2022
AUI3702 Questions and answers to be
The Internal Audit Process: Test of Controls used as guideline.
Do not copy and paste as this
constitutes plagiarism.
,ASSIGNMENT INFORMATION
Assignment number 02
Semester Second
Submission due date 26 September 2022
Unique number 797543
Number of questions 2
Total marks 44
, QUESTION 1
The Church Council of a local parish requested you, as an internal auditor, to review the
handling of the church’s financial activities. You prepared the following notes pertaining to
the collections taken at weekly services:
The Church Council has delegated the responsibility for the financial management and audit
of the financial records to the finance committee.
This committee prepares the annual budget and approves major expenditure but is not
involved at all in the collection of contributions or in keeping records thereof.
No external audit has been considered necessary during the past few years because the
same reliable parish member, who reports monthly to the finance committee, has kept the
church’s records, and has also served as the financial secretary of the parish for the past
fifteen years.
The collection of contributions at the weekly services is carried out by a team of ushers.
The head usher counts the collection in the church office, immediately after each service.
He then places the collection, together with a note of the total amount thereof, in the safe.
The financial secretary opens the safe the following day and recounts the money. R1000
is routinely withheld to meet cash expenditures during the coming week and the balance
of the money is then deposited.
SEMESTER 2
2022
AUI3702 Questions and answers to be
The Internal Audit Process: Test of Controls used as guideline.
Do not copy and paste as this
constitutes plagiarism.
,ASSIGNMENT INFORMATION
Assignment number 02
Semester Second
Submission due date 26 September 2022
Unique number 797543
Number of questions 2
Total marks 44
, QUESTION 1
The Church Council of a local parish requested you, as an internal auditor, to review the
handling of the church’s financial activities. You prepared the following notes pertaining to
the collections taken at weekly services:
The Church Council has delegated the responsibility for the financial management and audit
of the financial records to the finance committee.
This committee prepares the annual budget and approves major expenditure but is not
involved at all in the collection of contributions or in keeping records thereof.
No external audit has been considered necessary during the past few years because the
same reliable parish member, who reports monthly to the finance committee, has kept the
church’s records, and has also served as the financial secretary of the parish for the past
fifteen years.
The collection of contributions at the weekly services is carried out by a team of ushers.
The head usher counts the collection in the church office, immediately after each service.
He then places the collection, together with a note of the total amount thereof, in the safe.
The financial secretary opens the safe the following day and recounts the money. R1000
is routinely withheld to meet cash expenditures during the coming week and the balance
of the money is then deposited.
