MACC program

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Part 1: The Initial Audit
1) What additional work could the Internal Audit Department perform prior to issuing the audit report?
The internal audit’s work is necessary to the entity. The internal audit can accumulate evidences from different documents, statements and reports. Their reprehensibility is to provided reasonable assurance in entity’s daily operation. In this case, there are some materials has been founded in MCS. From my opinion, the internal audit could pay more attention on the manager’s internal control evaluation. The additional work can be started by evaluating all financial records to ensure the accuracy of the financial statements, and reviewing administrative control with the university policy and regulations to
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Part 3: The Fraud Audit
1) What should have been the key points of the audit/fraud investigation report? What supportable audit conclusions could be drawn?
The audit/fraud investigation report should included 4 parts.
A. Introduction and Scope: This is the first section in the report. This contains background, specific concerns, objective and timing. In this case, the background is the telephone call from a local repair shop owner who was working on a personal computer brought in from the public library. This is the main cause for internal auditors to start suspecting fraud. Besides that, the reports also need to concern the specific events, such as the MSC manager’s departure from his position. In the scope paragraph, the internal audit department revealed that they could not account in full of purchase exceeding $140,000 that had been ordered by MCS, for which the university.
B. Findings: This paragraph is based on the documents that auditors reviewed and information collected. The internal auditor accumulate evidence from these documents and find out the fraud events. The report also contained the approached used in detecting the frauds.
C. Conclusions: The conclusion part is the summary of the findings. The auditor can give some concerns based on the findings. Besides that, the internal auditor will also report the weakness in internal control.
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