Your client, ABC Ltd. has a system for inputting purchase and expense invoice where
the operator inputs the following from each item.
Order number (a code 2221 is used for items like electricity)
Supplier name
Supplier code number
First four letters of nominal account name (entered on invoice by purchase
department manager)
Nominal account code (entered by purchase department manager)
Date
Goods inward note number
Net amount
VAT amount
Gross amount
Required:
a) Suggest manual operation and controls which might previously have applied to
these invoices.
(6 marks)
b) Suggest input controls that might be applied by the program to these items. (8
marks)
c) List some audit tests that could be applied to these items indicating the purpose of
each test and the relevant audit evidence obtained.
(6 marks)