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You have been assigned to the audit of Crusader Steel Ltd (CSL), a large, Canterbury-based...

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Accounting

You have been assigned to the audit of Crusader Steel Ltd (CSL), a large, Canterbury-based wholesaling company. The audit plan indicates that a 'control reliance' strategy has been adopted. CSL operates a largely paper-based sales system but hopes to shift this on-line in the near future. The audit team intends to rely on the following key controls in its audit of the revenue cycle: (i) All sales orders are taken over the phone or received by email. At the time the order is received, the customer service officer checks that the customer is an approved customer, and that the sale will not result in the customer exceeding their credit limit. (ii) Customer service officers must create a written sales order (in triplicate) for each phone order before goods are shipped from the warehouse. (iii) Sales order documents are pre-numbered. (iv) The debtors clerk matches each sales order copy received from the customer service officers with notification of shipping from the warehouse. (v) Monthly, the credit officer reviews the aged debtors' listing and follows up slow paying debtors. Mid-Year Examinations, 2023 ACCT346-23S1 (C) Page 5 of 9 REQUIRED: For each of the controls identified above: (a) Indicate the purpose of the

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