You are the audit senior at Perrett & Perrin and are conducting the audit of Deam McKellar Walters (DMW) for the year ended 30th June 2021. DMW is a manufacturer of electric cars parts, supplying all the major car brands. DMW buys and sells parts via a B2B hub, an online marketplace where many businesses use a common technology platform to transact. As per the audit plan, the junior auditor has undertaken tests of controls over the B2B system, selecting a sample of electronic transactions to test whether: 1. Access to the hub is restricted to only authorised entities as intended; II. The security infrastructure includes a firewall to act as a barrier between the private hub and the public internet; III. Programmed controls ensure the order is 'reasonable": IV. The method of payment or credit worthiness of the customer has been established. Required: a) For each of the above tests, explain the purpose/objective of the control. (4 marks) b) For control (II) above, explain: how the auditor could test the control; (1 marks) what the result would be if the control was working as intended; (1 marks) what the result would be if the control was not working as intended. (1 marks) c) For control (III) above, explain: how the auditor could test the control; (1 marks) what the result would be if the control was working as intended; (1 marks) what the result would be if the control was not working as intended. (1 marks)
