ACCA F8 - Audit and Assurance Revision Kit 2016

(c)
(d)
Control procedures over standing data on trade payables master file
Access to the trade payables master file is limited only to authorised staff
Amendments to standing data can only be made by authorised staff and all amendments must be
authorised prior to input
Access to the file is controlled by logins and passwords and passwords must be prompted to be
changed regularly (say, every 90 days)
Computer log is reviewed regularly by IT department to detect any unauthorised access or attempts
to access the trade payables master file
The list of suppliers should be reviewed regularly by a senior manager and those no longer used
should be removed from the system
Use of CAATs in audit of Westra
CAATs could be used in the audit of purchases and payables at Westra in a number of ways.
For example, audit software could be used to generate a sample of ledger balances to be agreed to supplier
statements. CAATs could also be used to reperform the cost of the total on the file to ensure the file is a
complete record of transactions. CAATs can also be used to perform ratio calculations for analytical
procedures on the purchases and payables data. Test data could be used to undertake some controls testing
on the trade payables master file, such as on data access and payments to suppliers.
However, generally for this audit, the use of CAATs is somewhat limited as the company uses a mixture of
manual and computerised systems, and where computerised systems are used, they are not fully integrated
with each other.
Question 17
Text references. Chapters 9 and 10.
Top tips. This scenario-based question tests your applied knowledge of internal controls.
Part (a) is knowledge-based so should be straightforward. Note that only two methods are required.
Part (b) asks for control objectives. This can be answered independently of the scenario, but your answer here
should help to inform your answer for part (c).
In part (c), keep your answer in a tabular format and make sure your answer is related to the scenario.
Easy marks. Part (a) and (b) should both yield easy marks.
Marking scheme
(a)
(b)
Marks
Up to 1 mark each for a description of a method, up to 1 mark each for an
advantage, up to 1 mark each for a disadvantage. Overall max of 2 marks each
for methods, advantages and disadvantages.
– Narrative notes
– Questionnaires
– Flowcharts 6
1 mark for each control objective, overall maximum of 2 points.
– To ensure orders are only accepted if goods are available to be
processed for customers
– To ensure all orders are recorded completely and accurately
– To ensure goods are not supplied to poor credit risks
– To ensure goods are dispatched for all orders on a timely basis
– To ensure goods are dispatched correctly to customers and are of an
adequate quality
232 Mock exam 2: answers