Essay on Audit Proposal - 1ç

1611 Words Sep 3rd, 2011 7 Pages
Audit Proposal—Kudler Fine Foods
Previously Kudler Fine Foods had asked accounting firm 123 Accounting for their recommendation on a system which would improve automation in their business processes. Accounting firm 123 Accounting provided Kudler with a recommended course of action to take towards automating their accounting information system, as well as provided a flowchart to assist in describing the process by which the software will help management consolidate their financial data. Currently Kudler is asking accounting firm 123 Accounting for a proposal for audit schedules for the systems previously mentioned.
This report will briefly outline an audit proposal, from 123 Accounting , on the previously analyzed systems to include;
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From these two recommendations alone, and since Kudler is not a particularly large company (all of their business processes are handled internally), only three of the four different types of IT audits should be used to audit the business processes.
Payroll/AP/AR
Many companies choose to outsource many of their payroll/AP/AR functions to an outside company. Because of this, an SAS 70 audit is needed to ensure that the outside company that is performing these services is following the correct guidelines and that their computer systems are up to date and up to standards. Kudler, however, takes care of everything internally and does not utilize an outside company for these functions. Because of this, only attestation and an SAS 94 audit would be utilized for each department. A data analytical review (attestation) would be required to ensure that the numbers are reasonable and an SAS 94 audit would ensure the physical and logical security of the business functions.
Inventory
Kudler’s inventory department would differ from the other departments in that it would require a compliance review as well as a data analytical review and an SAS 94 audit. Besides the fact that the computer systems needed for inventory have to be tested for physical and logical control, and the inventory data needs to be tested for correctness, the physical stock room needs to be in compliance with OSHA regulations. If it is not, employees could be risking serious injury…

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