STUDY UNIT 0

‘Semester 1 Recap’ and

STUDY UNIT 2
‘Audit Supervision and
Review Requirements
Using ACL-GRC’

[PART C – OBTAINING
REMEDIAL ACTION FOR
DESIGN FAILURE ISSUES]
WIL (Simulation) IIIB
(WIB316D)

Faculty of Economics and Finance

Department of Auditing
Learning Outcome
Semester 1 Recap
• Obtaining remedial actions for Design Failure Issues [DFI] using ACL-GRC
Study Unit 2
• The student will be equipped with knowledge in order to conduct supervision and
review on an engagement that was completed.
• The student will be required to raise review notes from a managerial or audit
supervisory capacity.
• The student will then also be required to address or clear the review notes that was
raised from an internal audit trainee perspective.

Faculty of Economics and Finance

Department of Auditing
Assessment Criteria
Semester 1 Recap
• Obtaining Remedial Action from Management on the Design Failure
Issues Using ACL-GRC
Study Unit 2
Audit manager supervision and review requirements of the conduct of the
engagement and review notes
• Raise review notes in the capacity as an audit manager or internal audit supervisor
• Address or clear review notes in the capacity of a junior or trainee internal auditor

Faculty of Economics and Finance

Department of Auditing
 • You have raised the
findings now you need
engagement
management to
provide remedial
actions

Faculty of Economics and Finance

Department of Auditing
Study Unit 2: Sign-off,
raising ‘review note’ or
‘to do’ and
addressing / clearing
‘review notes’ ‘to do’
for your Design Failure
Issues’ Remedial
Action Plan

Faculty of Economics and Finance

Department of Auditing
Assessment Criteria 1 [REMEDIAL ACTION
PLAN FOR DESIGN FAILURE ISSUES ]

Student will be required to review the work of the

preparer and raise review notes in the capacity as
an audit manager or internal audit supervisor

Faculty of Economics and Finance

Department of Auditing
‘Preparer’ Sign-off
the work and Notify
the ‘Next Reviewer’
1. Preparer signs off ‘Design Failure Issues’ then
notifies the next reviewer. Next Reviewer receives
an email, notifying them that they have been
requested to review the Design Failure Issues.

Faculty of Economics and Finance

Department of Auditing
 1

Faculty of Economics and Finance

Department of Auditing
Email
Faculty of Economics and Finance
Department of Auditing
FINAL
PRODUCT
‘Signed-
off
Design
Failure
Issues’
Faculty of Economics and Finance
Department of Auditing
Details of the Next Reviewer
‘Review Note’ or ‘To do’
Description Assigned to (required) Due Date Status
Design Failure Issues well- Preparer “Student 07/31/2024 Open
documented. Obtain remedial Governor”
action plan from Tshepo Brick
Factory Management for all the
design failure issues raised.

Faculty of Economics and Finance

Department of Auditing
 1

Faculty of Economics and Finance

Department of Auditing
The ‘PREPARER’
clears the reviews
The preparer clears the review notes from the next
reviewer as detailed in the ‘To do’.

Faculty of Economics and Finance

Department of Auditing
Design Failure Issue
Remediation Action
Issue Name There is no control in place to ensure that all approved credit customers are checked for credit
worthiness

Overall Status Open

Remediation Status Management remediating
Remediation Plan Management accepts the finding and acknowledges the recommendation.

Management will put in place a control measure which will ensure All debtors are checked for
credit worthiness and the sales system has a detection control to reject all debtors without
credit worthiness check.

Remediation deadline 31 January 2025

Actual Remediation Date [To be determined once follow-up commence]
Priority [To be documented during Follow-up]
Owner [To be documented during Follow-up]

Faculty of Economics and Finance

Department of Auditing
 1

5
Faculty of Economics and Finance
Department of Auditing
Design Failure Issue
Remediation Action
Issue Name Approved Customer list is not shared with Sales Staff

Overall Status Open

Remediation Status Management remediating

Remediation Plan Management accepts the finding and acknowledges the recommendation.

Management will put a system in place which will ensure that once the customer is approved
for credit the sales team automatically get access to the masterfile.

Remediation deadline 31 December 2024

Actual Remediation Date [To be determined once follow-up commence]
Priority [To be documented during Follow-up]
Owner [To be documented during Follow-up]

Faculty of Economics and Finance

Department of Auditing
 1

5
Faculty of Economics and Finance
Department of Auditing
Design Failure Issue
Remediation Action
Issue Name Errors in orders: Customer information is not matched to the approved customer list

Overall Status Open

Remediation Status Management remediating
Remediation Plan Management accepts the finding and acknowledges the recommendation.

Management will put in place measures to ensure ordering staff match the customer
information with the approved customer list before accepting the orders

Remediation deadline 30 May 2025

Actual Remediation Date [To be determined once follow-up commence]
Priority [To be documented during Follow-up]
Owner [To be documented during Follow-up]

Faculty of Economics and Finance

Department of Auditing
 1

5
Faculty of Economics and Finance
Department of Auditing
Design Failure Issue
Remediation Action
Issue Name There is no Unique Login details and passwords of customers for online orders Details

Overall Status Open

Remediation Status Management remediating
Remediation Plan Management accepts the finding and acknowledges the recommendation.

Management will put a control measure in place to ensure that the system’s application
controls is configured in such a way that the customer cannot use similar passwords for online
orders.

Remediation deadline 30 April 2025

Actual Remediation Date [To be determined once follow-up commence]
Priority [To be documented during Follow-up]
Owner [To be documented during Follow-up]

Faculty of Economics and Finance

Department of Auditing
 1

5
Faculty of Economics and Finance
Department of Auditing
Design Failure Issue
Remediation Action
Issue Name The delivery note for inventory items selected from the warehouse and transferred to the
dispatch area is not sequenced.

Overall Status Open

Remediation Status Management remediating
Remediation Plan Management accepts the finding and acknowledges the recommendation.

Management will put a control measure in place to ensure that the inventory items from
warehouse are bar-coded sequentially.

Remediation deadline 30 May 2025

Actual Remediation Date [To be determined once follow-up commence]
Priority [To be documented during Follow-up]
Owner [To be documented during Follow-up]

Faculty of Economics and Finance

Department of Auditing
 1

5
Faculty of Economics and Finance
Department of Auditing
The Preparer sign-
off the cleared
reviewed work
The Preparer signs-off the work

Faculty of Economics and Finance

Department of Auditing
 1

Faculty of Economics and Finance

Department of Auditing
The ‘PREPARER’
informs the ‘Next
Reviewer’ that the
reviews is cleared
The preparer informs the next reviewer that the
‘To do’ is CLEARED.

Faculty of Economics and Finance

Department of Auditing
Sign-off and Inform the Next
Reviewer that the ‘Review Note’ or
‘To do’ is CLEARED
Description Assigned to (required) Due Date Status
Remedial action plan is obtained Preparer “Student 07/31/2024 Cleared
from Tshepo Brick Factory Governor”
Management for all the design
failure issues raised and are
documented on ACL-GRC

Faculty of Economics and Finance

Department of Auditing
 1

Preparer clears the review

Faculty of Economics and Finance

Department of Auditing
 1

3
•The Preparer update 2
the ‘To do’; put a
comment and ‘post the
comment for the ‘Next
Reviewer’

Faculty of Economics and Finance

Department of Auditing
 1

Preparer informs the ‘Next

Reviewer’ of the cleared
‘To do’

Faculty of Economics and Finance

Department of Auditing
The ‘Next Reviewer’
checks the work and
informs the ‘PREPARER’
that the reviews is closed
The next reviewer informs the preparer that the
‘To do’ is CLOSED.

Faculty of Economics and Finance

Department of Auditing
The Next Reviewer informs the
Preparer that the ‘Review Note’ or ‘To
do’ is CLOSED
Description Assigned to (required) Due Date Status
Reviewed the Remedial action Preparer “Student 07/31/2024 Closed
plan obtained from Tshepo Brick Governor”
Factory Management and
satisfied with the work
performed, therefore, closed the
‘Review Note’ or ‘To do’.

Faculty of Economics and Finance

Department of Auditing
 1
•The ‘Next Review’ 2
closes the ‘review
note’ or ‘to do’

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Department of Auditing
 Final Product

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Department of Auditing
Questions

Faculty of Economics and Finance

Department of Auditing
Next Class…
STUDY UNIT 1: Fieldwork using ACL-GRC and
STUDY UNIT 2: ‘Audit Supervision
and Review Requirements Using
ACL-GRC’ – PART A [AUDIT
PROGRAM]

Faculty of Economics and Finance

Department of Auditing
And remember…

TILL NEXT SESSION….

Consulting Hours
Via Appointment or Online via the email below:
E-mail it to:
Polokwane Campus: [email protected]
Mbombela Campus: [email protected]
Ga-Rankuwa Campus: [email protected]
Ga-Rankuwa Campus: [email protected]

Faculty of Economics and Finance

Department of Auditing
THANK YOU

Faculty of Economics and Finance

Department of Auditing