Audit Proposal
Brenda Pina, Rachel Foster, Maria Kight, Christine Twiford, and Clorissa Willie
ACC/542
July 14, 2014
Professor Thomas Cappels
Audit Proposal
There are many different types of audits including internal, external, and information technology. Companies should be familiar with the types of audits that may possibly be used on an Accounting Information System (AIS). Knowing the different types of audits and where they are used will help a company be ready for an audit and make the process much smoother. There are some circumstances where auditing through a computer is not always beneficial. Auditors want to make sure they are completing their audits fully and appropriately to the best of their abilities.
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Access controls protect data from being released to non-authorized users, hackers, and other intruders.
How the audits are conducted
Kudler will conduct an information system audit by examining and evaluating their present hardware and software. They will also examine their IT controls, systems security, risk management, and the adequacy of their current systems. They can carry out their marketing audit by evaluating the effectiveness of their marketing program and examining its capabilities. It will evaluate their functions in respect to their goals, mission, vision, and their values of Kudler, which is done externally. Kudler will examine their faculty, and their deficiencies will be identified. Another suggestion is equipment be audited, the maintenance, and an examination to determine if it’s being operated at the designed levels, safety set-up, security, and access issues. Their audit will be done by an external auditor who will examine their accounts, vouchers to support, financial information tests, evaluation of their financial statements, and also examine the internal control and make comments for improvements.
Events that prevent reliance on auditing through the computer
Using computer-based accounting systems does have its disadvantages, such as certain laws pertaining to confidentiality, the requirement to protect against the loss of data through power failures, the
Kudler Fine Food has expanded business and updated their computer systems to meet demands. As IT information is adopted within the organization, automation control processes has become more virtualized. To ensure that Kudler’s computerize systems function properly an audit must be performed on an annual basis. Management at Kudler Fine Foods wants to see the proposed audit schedules for all systems. Management wants to know the types of audit and how they will be conducted. In addition, management would like to know about events that might prevent reliance on auditing through the computer.
This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments of inherent and control risks into an overall risk of material misstatement for the assertions. • The substantive audit program of accounts receivable and revenue. • The audit sampling plan for the confirmation of accounts receivable.
978-0-. 912503-35-6) identify issues and to research solutions. 6. Understand the . Integrated Audit Practice Case, 4th
New audit technologies assist in audit. It make the audit well organized and best results are achieved efficiently and effectively. The auditor uses computer assisted technique to perform the audit. The ultimate purpose for the use of technology is for a faster and more efficient audit process.
An important decision for any shareholder is deciding whether or not to do business with that company. When a business is audited, the operations are reviewed to make sure that nothing is being hidden. An auditor will review the company’s financial statement and practices to confirm that each are direct and correct. The financial statements are the business’s way of representing them and showing that they are following the Generally Accepted Accounting Principles. The audit process is an important one because it provides a platform for the auditor’s opinion concerning the financial statements of the company. As part of the audit process the auditor will conduct an audit plan that outlines a number of actions that he or she will be perform while also detailing the reason for those actions. With every audit, the business’s management is in charge of handing over the financial statements that the auditor will review; while the auditor will review the statements for any material or immaterial misstatements.
Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions?
These days it is especially important to pay attention to details when it comes to deciding if your accounting system is providing the kind of information that may be required of you to produce. I think legal requirements and government regulations are becoming more demanding as to what they expect to see if someone such as the I.R.S. were to show up and ask for an audit. I would like to talk a little about a few of the key features, core technology, benefits, and costs of installing and maintaining an efficient accounting system and some of the benefits it would be to your company, especially in areas where details
LCC has conducted an audit of Apollo Shoes, Inc. balance sheets, the retained earnings, cash flows, and other related statements of income for the year ended December 31, 2006/2007. Apollo Shoes Inc management is responsible for maintaining the effective internal controls that goes along with the financial statements and how well the accuracy is going to be. LLC has evaluated the effectiveness of the said controls and with everything to see the relevance in the timing, the substantive in quality, and the comprehensive in nature. The responsibility of our firm is to express an opinion that is supported by audit evidence in
Over the last several weeks, there have been several recommendations made to update and replace the current software of Kudler Fine Foods IT audit systems. These recommendations have been made in hopes of making the company more efficient and profitable. According to most recent research, there are several audit systems that seem to best suit all audit functions of Kudler Fine Foods. Having said that, it is important that Kudler’s management consider the legitimacy of data and integrity within their auditing system. This analysis describes how Kudler Fine Foods is able to benefit from the use of new audit software. It also explains how the Computer Assisted Auditing Techniques confirms the company’s system data integrity.
With new threats introduced in the accounting environment, modern organizations now must work hard to safeguard information that was not at such a risk prior to new technology. Outside threats are a real danger to accounting functions in modern organizations, but other dangers to success lie from within.
Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and
SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit)
The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation and criticisms of its theoretical foundation, the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the nature, timing, and extent of audit procedures (especially substantive procedures) in audits of financial statements. The audit risk model provides a conceptual framework for the risk assessment standards.
The aim of this report is to develop an audit plan using the 2007/2008 annual reports of the WesFarmers. This report will provide an understanding of the underlying concepts of an overall audit strategy. This strategy will bring forward the direction and scope of the WesfFarmers audit plan. This report will address five major points these are as follows:
When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working