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Extract from the question
The company operates a fully automated credit check process for all its new hotel customers.
The automated system generates a credit limit for each new customer which the sales
director approves before the customer can place any orders. The sales director evidences
approval of the credit limit in the system.——————————————————————————————————————————
does this mean that the sales director has the authority to decide which customer order to be approved and he might cancelled one with poor credit rating?
EXTRACT from examiners report :
for example, the automatic credit
check and review of credit limits by the sales director are not separate controls as
any system generated credit limit would need to be reviewed for reasonableness by
a responsible official.
Having identified direct controls, candidates then need to explain each control. In
considering this it is important to think about what the aim of the control is, what
potential misstatement is being prevented or detected.
———————————————————————————————————————————-
what i am referring as risk is in fact the implication of the test of control.The link you provided is displaying this:
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Extract from the question
This scenario relates to four requirements.
It is 1 July 20X5. You are an audit supervisor with Walsh & Co. You are currently reviewing
notes in relation to the internal controls in place at your client, Whittaker Co. Whittaker Co
manufactures and sells luxury bed linen wholesale to the hotel trade and direct to the public
from its factory store. It has a year ending 31 August 20X5.Sales
Whittaker Co implemented a new sales system in May 20X5. The new system was fully tested
prior to its implementation and will be run in parallel with the old system until the year end.
Whittaker Co’s internal audit (IA) department is responsible for comparing the output from
the old and new systems, investigating any discrepancies and making recommendations for
further action.The company operates a fully automated credit check process for all its new hotel customers.
The automated system generates a credit limit for each new customer which the sales
director approves before the customer can place any orders. The sales director evidence
approval of the credit limit in the system
————————————————————————————————————————-
You are right, what it truly is a direct control instead of a test of control.
so, requirement of the question is to give the direct control and its risk it is preventing.
can you help?I have gone through the opentuition notes concerning risk and uncertainty and I have not found anything concerning risk and uncertainty.
I do have the MA revision kit, will i cover this part of the syllabus if i work this part from the MA revision kit?
so when it is amortised it may or may not be a relevant cost in the decision package?
I find it to be interesting, I began practising on excel but in the video it shows that i can use the spreedsheet like in the exam and make a pdf of it when i am finished. I used to save the spreadsheet in separate file for each section C questions.
i meant like for example, i use the formula =cell B4*(1+B7) to calculate the number increased by the new percentage. Do i have to learn more of these?
Also I don’t work the calculation on excel, but on the calculator. So the workings are like writing on paper. Is this OK?
Can I get any explanations simple for these assumptions so I can understand?
I know it’s controllable profit but the part I am not understanding is the head office cost.
I think the online question itself has a mistake: Goodwill is to be impaired by $20
needs to be replaced by 20000. And deduced NCI share.right?yes that is easy and i miss that. I guess that the other parts of the question does not affect REtained earnings
. Am I right?I have watched the lectures. How it helps make more goal congruent decisions
