(b) Control deficiencies and recommendations
– Assets not physically verified 2
– Internal audit staff shortages 2
– Payroll setting up new staff 2
– Lack of approval for wage increase 2
– Credit limits not reviewed regularly 2
– Inappropriate access to high value inventory 2
– Perpetual inventory counts not complete 2
– Bank reconciliations not always reviewed 2
– Invoices not paid in line with suppliers’ terms 2
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Max 8 issues, 2 marks each 16
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Total marks 20
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