ACCTG 222 Semester 2, 2023
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Assignment 2: Question and Answer Booklet
Name UOA ID NUMBER
 Refer to the Assignment 2 Instructions file for the Case Description.
 The assignment has 5 questions worth 60 marks in total.
 Answer all the questions in the spaces provided.
 Do not change the format of the answer booklet.
Question Marks Attained Total marks allocated
1 10
2 17
3 24
4 4
5 5
Total Marks 60
ACCTG 222 Semester 2, 2023
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Question 1
The two pages of the diagrams provided for in the Instructions File outline Apparel NZ
Ltd’s processes of its sales order and shipping system. In the space provided below, list
TEN key activities depicted in the diagrams. (Hint: Keep your descriptions concise,
however, clearly identify the internal or external entities involved in the activity).
Key Activities
1
2
3
4
5
ACCTG 222 Semester 2, 2023
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6
7
8
9
10
(Total for question: 10 marks)
ACCTG 222 Semester 2, 2023
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Question 2
Draw a logical data flow diagram depicting Apparel NZ Ltd’s sales order and shipping
system as shown in two pages of diagrams in the instructions file.
(Total for question: 17 marks)
ACCTG 222 Semester 2, 2023
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Question 3
Identify FOUR important internal controls that exist in the Apparel NZ Ltd’s two
pages of diagrams in the instructions file. For each control, identify the risk
(threat) being addressed and describe how the control minimises the risk. (Do not
discuss segregation of duties and updating databases in your answer).
Internal Control Risk being addressed Description
(Total for question: 24 marks)
ACCTG 222 Semester 2, 2023
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Question 4
Identify and describe ONE segregation of duties that is missing or lacking in the
diagram provided on page 4 of the instructions file.
Note: Make sure you name the functions (i.e. custodial, recording and authorization) that
have not been segregated in the identified weakness so that the segregation conflicts
can be seen in your answer.
(Total for question: 4 marks)
ACCTG 222 Semester 2, 2023
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Question 5
During Apparel NZ Ltd’s external audit, one of the senior auditors noted that the
company’s sales returns had increased significantly in the last year. He wants his
team to analyse the company’s credit notes. Describe FIVE important checks the
team can perform to identify any suspicious entries in relation to the company’s
credit note data.
1
2
3
4
5
(Total for question: 5 marks)
ACCTG 222 Semester 2, 2023
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