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Consider the following independent situations for an audit for the year ended 30 June 2020:
1. Freddy Ltd.'s accounts receivable agrees to its sub-ledger, but there is no aging review of the invoices. There is an increasing percentage of the invoices falling into 90 days category.
2. LDR Ltd process payroll according to the following procedures. The payroll officer processes the timesheets, prepares the pay sheet information, investigates any anomalies, and processes the pays from the business bank account.
3. Electricals Ltd failed to discover employee thefts of inventory due to lack of timely stocktake.
Required:
Problem 1: Identify the control weaknesses for each of the independent situations above and the impact on control risk based on the above information.
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