The sales system is configured in a way that will not allow a user to process

The sales system is configured in a way that will not

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The sales system is configured in a way that will not allow a user to process customer order if accepting the customer order would cause the customer to exceed their credit limit The nature of the control activity Nature of control activity Example control Authorisation Authority to hire new employees is assigned to the HR manager Performance review Sales manager reviews actual sales against those forecast on a monthly basis Segregation of duties Different people are responsible for maintaining a list of suppliers and payments to suppliers Reconciliation Monthly bank reconciliation is prepared by the accountant and reviewed by the financial controller Physical control All employees must use their ID swipe cards to gain access to the entity’s premises IT application controls (ITACs) ITACs operate within individual applications or programs at the transaction level over the input, processing or output of data. They are either embedded (i.e. programmed in a specific way) or configurable (i.e. how the control is performed depends on how the application is set up). Examples include: Type of ITAC Example control Edit check – automated check on whether data is in the correct format or incomplete Required fields in forms or requiring a date to be input in a certain way (e.g. ‘dd/mm/yyyy’) Validation – automated check on whether the data meets specific criteria Only valid customer reference numbers can be entered when creating sales invoices Calculation The aging of invoices in an aged debtors report Interface – ensures data is accurately and completely transferred from one system to another A report generated when the sales system has uploaded the end of day file to the server, which contains the number of data records successfully uploaded and the number of data records which were rejected
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Quick Reference Guide 9.1 Subsequent Events Audit & Assurance Chartered Accountants Program Page 9-1 Quick reference guide 9.1 – Subsequent Events ISA 560 Provides evidence of a condition that existed at the end of reporting period Consider the impact on the auditor’s report Auditor responsible for identifying the events • If events have been identified, the auditor must determine whether the events have been appropriately reflected in the financial statements Management responsible for informing auditor and auditor must act Auditor has no obligation to check for but has obligations if become aware of events Adjusting Event Adjust financial statements for the period just ended PERIOD 1 Between the reporting date and the date the auditor’s report is signed PERIOD 2 After the date of the auditor’s report but before the date that the financial statements are issued PERIOD 3 After the financial statements have been issued Subsequent events: …events occurring between the reporting date of the financial statements and the date of the auditor’s report, and facts that become known to the auditor after the date of the auditor’s report  Indicative of a condition that arose after the reporting period Non-Adjusting Event If material, disclose in subsequent events note Events occurring after the reporting period (IAS 10) Auditors responsibilities relating to subsequent events under ISA 560 at various points after period end:
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Quick Reference Guide 9.2
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