Contents
AUI3701 ASSIGNMENT 4 SOLUTIONS 2021 SEMEMSTER 1 AND 2 ........................................... 1
QUESTION 1.......................................................................................................................................... 1
Question 1 (20 marks) ............................................................................................................................. 1
Aggie Moloi works in an audit firm (AuditSmart Inc) that provides external and internal audit
services.................................................................................................................................................... 1
Briefly describe the recommended correct steps of a preliminary survey and criticise how Aggie
conducted her preliminary survey. Answer this question by using the following table format: ............. 3
For the assurance engagement of the procurement function, list the steps in the planning phase. ......... 5
Formulate four (4) audit objectives from the scenario above. ................................................................ 6
Describe eight (8) analytical review procedures you would perform to improve your understanding of
the operations of the procurement function during the preliminary survey stage of the internal audit of
the procurement function ........................................................................................................................ 6
Discuss four (4) implications for internal auditors when considering EDI in their audit. ..................... 7
AUI3701 ASSIGNMENT 4 SOLUTIONS 2021 SEMEMSTER 1 AND 2
QUESTION 1
Question 1 (20 marks)
Aggie Moloi works in an audit firm (AuditSmart Inc) that provides external and internal audit
services.
Aggie was assigned as the internal auditor for Sawubona Ltd. Sawubona Ltd manufactures
various tinned foods to major supermarkets nationwide. This is the first audit AuditSmart Inc
has provided to Sawubona Ltd.
Aggie was very excited to start the audit despite having a vague recollection of the preliminary
survey procedures. However, since she had not kept any notes from university, she decided to
conduct the preliminary survey using her limited knowledge.
Aggie knew she had to have a meeting with the client’s management, so she immediately drove
over to Sawubona Ltd. The audit client was not expecting her and was not available for a
meeting. Aggie decided to have a meeting with the available clerks at the company. They
chatted in general about how the company works and how all the departments fit in with each
AUI3701 ASSIGNMENT 4 SOLUTIONS 2021 SEMEMSTER 1 AND 2 ........................................... 1
QUESTION 1.......................................................................................................................................... 1
Question 1 (20 marks) ............................................................................................................................. 1
Aggie Moloi works in an audit firm (AuditSmart Inc) that provides external and internal audit
services.................................................................................................................................................... 1
Briefly describe the recommended correct steps of a preliminary survey and criticise how Aggie
conducted her preliminary survey. Answer this question by using the following table format: ............. 3
For the assurance engagement of the procurement function, list the steps in the planning phase. ......... 5
Formulate four (4) audit objectives from the scenario above. ................................................................ 6
Describe eight (8) analytical review procedures you would perform to improve your understanding of
the operations of the procurement function during the preliminary survey stage of the internal audit of
the procurement function ........................................................................................................................ 6
Discuss four (4) implications for internal auditors when considering EDI in their audit. ..................... 7
AUI3701 ASSIGNMENT 4 SOLUTIONS 2021 SEMEMSTER 1 AND 2
QUESTION 1
Question 1 (20 marks)
Aggie Moloi works in an audit firm (AuditSmart Inc) that provides external and internal audit
services.
Aggie was assigned as the internal auditor for Sawubona Ltd. Sawubona Ltd manufactures
various tinned foods to major supermarkets nationwide. This is the first audit AuditSmart Inc
has provided to Sawubona Ltd.
Aggie was very excited to start the audit despite having a vague recollection of the preliminary
survey procedures. However, since she had not kept any notes from university, she decided to
conduct the preliminary survey using her limited knowledge.
Aggie knew she had to have a meeting with the client’s management, so she immediately drove
over to Sawubona Ltd. The audit client was not expecting her and was not available for a
meeting. Aggie decided to have a meeting with the available clerks at the company. They
chatted in general about how the company works and how all the departments fit in with each
