Auditing and Issues Related to Auditing

QUESTION ONE [25]
As an internal auditor, you have completed a routine audit of the Accounts Payable department of XYZ Holdings (Pty) Ltd. Your audit revealed issues such as delayed invoice processing, non- compliance with the company’s procurement policy, and lack of proper documentation for certain supplier payments.
Prepare a formal audit report addressed to the Chief Financial Officer (CFO). Your report should follow the correct format and include the following:
• Title and recipient
• Introduction (purpose and scope of the audit)
• Key findings
• Recommendations
• Conclusion
Word count: 300–400 words

QUESTION TWO [20]
In the accounting environment—whether in audit, financial reporting, or internal controls—non- verbal communication supports teamwork and stakeholder interaction. Understanding non- verbal cues such as posture, space, and tone reinforces ethical conduct and professional presence.

2.1. Refer to the image depicting proxemics (personal space). Analyse how understanding proxemics is beneficial in finance departments—particularly in client-facing roles or internal control discussions. (10)
2.2. Develop a basic visual aid (flowchart or diagram) representing an aspect of effective financial communication, such as the internal control reporting process or purchase order cycle. Briefly explain how this visual tool enhances communication in a retail accounting department. (10)

QUESTION THREE [25]
Accounting operations rely heavily on consistent internal communication—via team meetings, budget briefings, audit discussions, and inter-departmental coordination. These forums ensure accuracy, compliance, and alignment across financial processes.

3.1. Describe common internal meetings in an accounting context within an organisation, such as financial review meetings, audit preparation sessions, or departmental budget discussions. Explain the objectives of each. (16)
3.2. Explain the role of a memorandum in the finance function of an organisation. Provide an example of how a finance manager might use a memo to communicate policy changes or clarify reporting procedures to accounting staff. (80–100 words) (9)

QUESTION FOUR [30]
Effective job application techniques are vital in both retail and finance sectors. Within accounting roles, clarity, accuracy, and professionalism are key when drafting job application documents, reflecting the meticulous nature of the profession.
4.1. As a prospective applicant for a position in accounting or financial management, list the essential elements to include when preparing a letter of application. (9)
4.2. Draft a formal application letter tailored to an entry-level accounting position in a retail organisation (e.g., Accounts Assistant at Pick n Pay). Ensure your application reflects strong attention to detail, ethical awareness, and an understanding of financial reporting responsibilities. (21)
Word count: 150–250 words

Sample Accounting Answers : Auditing

Expert Answer 1: Introduction
The main purpose of performing this audit is to evaluate the effectiveness of internal control at the Accounts Payable Department of XYZ Holdings Pty Limited. The key focus areas of the audit include processing the supplier invoices, achieving compliance with procurement policies and ensuring the completeness of documentation for payments. The analysis of the key findings from the audit is discussed as follows:
Findings
The findings indicates that there is delayed in invoice processing and it ultimately resulted into late payment penalties and unfavaourable relationships with suppliers. It is also evaluated that there is non compliance with procurement policy, as there were purchases made without an approved purchase orders. The findings also indicated that there were insufficient documents identified in many instances and suppliers payment released without proper documents.

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