问题详情

(a)(i)Definea‘testofcontrol’anda‘substantiveprocedure’;(2marks)
(ii)StateONEtestofcontrolandONEsubstantiveprocedureinrelationtosalesinvoicing.(2marks)
(b)ShinyHappyWindowsCo(SHW)isawindowcleaningcompany.Customers’windowsarecleanedmonthly,thewindowcleanerthenpostsastampedaddressedenvelopeforpaymentthroughthecustomer’sfrontdoor.
SHWhasalargenumberofreceivablebalancesandthesecustomerspaybychequeorcash,whichisreceivedinthestampedaddressedenvelopesinthepost.Thefollowingproceduresareappliedtothecashreceivedcycle:
1.Ajuniorclerkfromtheaccountsdepartmentopensthepostandifanychequesorcashhavebeensent,sherecordsthereceiptsinthecashreceivedlogandthenplacesallthemoniesintothelockedsmallcashbox.
2.Thecontentsofthecashboxarecountedeachdayandeveryfewdaysthesesumsarebankedbywhichevermemberofthefinanceteamisavailable.
3.Thecashierrecordsthedetailsofthecashreceivedlogintothecashreceiptsdaybookandalsoupdatesthesalesledger.
4.Usuallyonamonthlybasisthecashierperformsabankreconciliation,whichhethenfiles,ifhemissesamonththenhecatchesthisupinthefollowingmonth’sreconciliation.
Required:
ForthecashcycleofSHW:
(i)IdentifyandexplainTHREEdeficienciesinthesystem;(3marks)
(ii)Suggestcontrolstoaddresseachofthesedeficiencies;and(3marks)
(iii)ListtestsofcontrolstheauditorofSHWwouldperform.toassessifthecontrolsareoperatingeffectively.(3marks)
(c)Describesubstantiveproceduresanauditorwouldperform.inverifyingacompany’sbankbalance.(7marks)
请帮忙给出正确答案和分析，谢谢！