...Internal Audit of Al Fresco Audit Program Objective: To find out whether their financial information is free from irregularities. Audit Steps to Be Completed I. Planning and Administration Section 1. Prepare permission letter and engagement letter, and obtain approval from the audit director and the auditee. 2. Conduct audit planning, and the following should be discussed: * Timing of audit and planned participants * Timing of fieldwork * Internal control checklist * Risk areas/ internal controls * Assignment of audit objectives * Testing to be performed * Budgeted hours * Permission letter * Engagement letter 3. Conduct pre-audit interview with auditee and document discussions held. 4. Set the schedule of the preliminary audit with the applicable management and discuss the following: * Timing of the audit * Audit objectives * Key contacts for the audit 5. Obtain permission to access relevant information like: * Organizational chart * Relevant reports utilized by the auditee * Strategic documents 6. Prepare and review the internal control questionnaire: * What is the Al Fresco’s perceived internal controls strengths and weaknesses? 7. Inquire of the auditee as to whether any relevant process flowcharts exist. If not, consider developing one for the permanent file. II. Fieldwork First Objective: To ascertain whether the use and recording of petty cash funds...
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...Audit Program Design Part III Sheila Dunn ACC 546 May 13, 2013 Cecil Lucy Audit Program Design Part III Inventory and Warehouse Cycle The inventory and warehouse cycle can be divided into five sections: acquire and record raw materials, labor, and overhead, internally transfer assets and costs, ship goods and record revenue and costs, physically observe inventory, and price and compile inventory. The following will be the tests of control, substantive tests of transactions, and analytical procedures. 1. Acquire and record raw materials, labor, and overhead a. Tests of control i. Check to make sure that all materials ordered have been accounted for ii. Check to make sure that there are records for all orders iii. Check payroll from payroll and personnel cycle iv. Check to make sure that the inventory is not overstocked b. Substantive test of transactions i. Take a sample of the orders placed ii. Make sure that the sample reflects that all material were received iii. Sample the payroll to make sure there are no discrepancies iv. Sample the inventory to make sure that it is replenished and constantly moving c. Analytical procedures i. Compare the results to prior years to ensure that the data matches up ii. Determine if there any risks 2. Internally transfer assets and costs a. Tests of controls i. Check financial statements to ensure assets were transferred ii. Check for the costs related to the business ...
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...Audit Program Design Part III Tywana Bowman University of Phoenix ACC545/Financial Accounting Professor Michael DeMarco September 26, 2010 Introduction In order to conduct a substantial audit of Apollo Shoes the auditor must obtain a sufficient understanding of the entity and the entity’s environment, including the internal control. The understanding of the entity and its environment helps the auditor in a variety of ways throughout the audit, including establishing materiality, considering appropriateness, and designing audit procedures that can facilitate the growth of Apollo Shoes. Before the auditor can begin the process of conducting the audit of the inventory and warehousing cash cycles, the auditor must prepare the audit plan and program for Apollo Shoes. Developing the audit strategy and plan aids the auditor in determining the necessary resources to perform the engagement. The auditor must develop a plan in mind that will reduce audit risk to an acceptable level for the inventory and warehousing cash cycle. The audit plan should include a description of nature, timing, and extent of the planned risk assessment procedures. The audit plan and program significantly affects the types and extent of further audit procedures to be used by the auditor in determining whether the financial statements are fairly stated in accordance with the US GAAP. The auditor should consider audit risk in relation to the individual account balances, classes of transactions, and disclosures...
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...Parts III, V, and VI of this case study dealt with obtaining an understanding of internal control and assessing control risk for transactions affecting accounts payable of Pinnacle Manufacturing. In Part VII, you will design analytical procedures and design and perform tests of details of balances for accounts payable. Assume that your understanding of internal controls over acquisitions and cash disbursements and the related tests of controls and substantive tests of transactions support an assessment of a low control risk. The listing of the 519 accounts making up the accounts payable balance of $12,969,686 at December 31, 2011 is included under the Pinnacle link on the textbook Web site. Required a. List those relationships, ratios, and trends that you believe will provide useful information about the overall reasonableness of accounts payable. You should consider income statement accounts that affect accounts payable in selecting the analytical procedures. b. Study Table 19-5 (p. 647) containing balance-related audit objectives and tests of details of balances for accounts payable to be sure you understand each procedure and its purpose. Prepare an audit program for accounts payable in a performance format, using the audit procedures in Table 19-5. The format of the audit program should be similar to Table 16-5 (p. 541). Be sure to include a sample size for each procedure. c. Assume for requirement b that (1) assessed control risk had been high rather than low for...
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...EXECUTIVE OFFICE OF THE PRESIDENT O F F I C E O F M AN AG E M E N T AN D B U D G E T W AS H I N G T O N , D . C . 2 0 5 0 3 THE CONTROLLER December 21, 2004 MEMORANDUM TO THE CHIEF FINANCIAL OFFICERS, CHIEF OPERATION OFFICERS, CHIEF INFORMATION OFFICERS, AND PROGRAM MANAGERS FROM: Linda M. Springer Controller SUBJECT: Revisions to OMB Circular A-123, Management’s Responsibility for Internal Control OMB Circular No. A-123 defines management's responsibility for internal control in Federal agencies. A re-examination of the existing internal control requirements for Federal agencies was initiated in light of the new internal control requirements for publicly-traded companies contained in the Sarbanes-Oxley Act of 2002. Circular A-123 and the statute it implements, the Federal Managers’ Financial Integrity Act of 1982, are at the center of the existing Federal requirements to improve internal control. This circular reflects policy recommendations developed by a joint committee of representatives from the Chief Financial Officer Council (CFOC) and the President’s Council on Integrity and Efficiency (PCIE). The policy changes in this circular are intended to strengthen the requirements for conducting management’s assessment of internal control over financial reporting. The circular also emphasizes the need for agencies to integrate and coordinate internal control assessments with other internal control-related activities. The revised circular is...
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... Section 7. Measurement, Analysis and Improvement 7.1 General 7.2 Monitoring and Measurement 7.2.1 General 7.2.2 Customer Satisfaction 7.2.3 Internal Audit 7.2.4 Monitoring and Measurement of Processes 7.2.5 Monitoring and Measurement of Product 7.3 Control of Non-Conformin Products 7.4 Analysis of Data 7.5 Improvement 7.5.1 Continual Improvement 7.5.2 Corrective Action 7.5.3 Preventive Action Section 8. Procedures 8.1 Control of Documents, DPWH-QMSP-01 8.2 Internal Quality Audit, DPWH-QMSP-03 8.3 Corrective Action, DPWH-QMSP-05 8.4 Preventive Action, DPWH-QMSP-06 Section 9. Appendices I. INTRODUCTION PROFILE The Department of Public Works and Highways (DPWH) is the state’s engineering and construction arm. As a public service agency, its primordial concern is to find the most effective and efficient ways to service its clientele- the Filipino people. The DPWH is one of the largest organizations in the executive branch in terms of size and budget. It is composed of six (6) Bureaus, nine (9) Services, 16 Regional Offices, 182 District Engineering Offices and 20 Project Management Offices. It is blessed with having people with bright minds in engineering in fulfilling its mandate. Its strategies are centered on a function that crosses the whole project development cycle in infrasructure development from planning, design, procurement, construction, to...
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...BUS 424 Auditing Summary of Key Audit Planning Concepts Dr. Miller I. GAAP versus GAAS/SAS Generally Accepted Accounting Principles (GAAP) – Consists of Statements of Financial Accounting Standards (SFAS) created by FASB to guide the preparation of financial statements. Generally Accepted Auditing Standards (GAAS) – 10 general standards representing a framework from which AICPA can provide interpretations. They are organized into 3 groups – General Qualifications, Field Work Performance, and Reporting Results. They are broad guidelines. General Qualifications: 1. Adequate training & proficiency – technically qualified and experienced with the industry 2. Independence in mental attitude – both in fact and in appearance 3. Due professional care – auditors are professionals responsible for fulfilling their duties diligently and carefully. Field Work Performance: 1. Adequate planning & supervision – to ensure adequate audit and proper supervision of assistants. 2. Understanding the client’s internal control system – to determine the adequacy of client’s system to provide reliable data and safeguarding assets and records. 3. Sufficient competent evidence – how much and what types of evidence to accumulate for given set of circumstances. Requires professional judgment. Reporting Results: 1. Determine whether statements are prepared in accordance with GAAP. ...
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...DEPARTMENTAL SALARY DETAILS 2014/15 TABLE OF CONTENTS Page Summary of Salary Details by Department 2014-15 .......................................................................1 Summary of Salary Details by Department 2013-14 .......................................................................2 Executive Council ............................................................................................................................3 Finance ...........................................................................................................................................14 Public Service Commission ...........................................................................................................21 Service Newfoundland and Labrador.............................................................................................23 Transportation and Works..............................................................................................................30 Legislature ......................................................................................................................................42 Advanced Education and Skills .....................................................................................................47 Environment and Conservation......................................................................................................52 Fisheries and Aquaculture.........................................................
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... |School of Business/Graduate | | |ACC/546 Version 2 | | |Auditing | Copyright © 2009, 2008, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students focus on the auditing practice performed by public accountants. Topics include the CPA profession and the auditor’s role, planning the audit, audit reporting and required communications, evaluating internal controls, audit programs for current assets and liabilities, and audit programs for other business cycles. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials ...
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...PROJECT PROPOSAL ON EFFECT OF MARKETING AUDIT ON ORGANISATIONAL PERFORMANCE IN SELECTED NIGERIAN FAST FOOD (A Case Study of MR BIGGS) BY OGUNRINDE FATIMO OLAIDE 090822049 1.1 Background to the Study In recent years, increasing pressure to reduce costs has forced many companies to radically reengineer the way they do business. This pressure is also leading marketing executives to reconsider the goals, structure, and effectiveness of their marketing arms. As a comprehensive review of a company’s market environment, the marketing audit identifies any inadequacies in overall marketing structures. It also identifies operational strengths and weaknesses and recommends the necessary changes to the company’s marketing strategies. If the marketing audits are done correctly, they will provide management with a useful and analytical tool for evaluating, measuring, motivating and revising management actions (Mylonakis, 2003). The growing complexity of the current market environment necessitates a more systematic scrutiny and evaluation process of the organisational preparedness to deal with the dynamic market. The existing information gathering and processing methods, generally, lack a comprehensive and integrated structure that incorporates the entire marketing function as well as providing strategic recommendations for action. The marketing audit, characterised as a systematic, comprehensive, objective, and independent approach, can assist the...
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...while introducing new types of risks to be managed. (3)technologies generally increase an organization’s overall net risks. (4)the objective of technology implementations is to increase profitability on a net basis. b. Which of the following is generally not considered a category of IT general controls? (1)Controls that determine whether a vendor number matches the pre-approved vendors in the vendor master file. (2)Controls that restrict system-wide access to programs and data. (3)Controls that oversee the acquisition of application software. (4)Controls that oversee the day-to-day operation of IT applications. c. As general IT controls weaken, the auditor is most likely to (1)reduce testing of automated application controls done by the computer. (2)increase testing of general IT controls to conclude whether they are operating effectively. (3)expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit. (4)ignore obtaining knowledge about the design of general IT controls and whether they have been implemented. d. Which of the following is an example of an application control? (1)The client uses access security software to limit access to each of the accounting applications. (2)Employees are assigned a user ID and password that must be changed every quarter. (3)The sales system automatically computes the total sale amount and posts the total to the sales journal master file. (4)Systems...
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...The impact of ICT on accounting practice in Nigeria CHAPTER ONE Introduction 1.1 Background of the study In the recent past centuries, before the inception of Information and Communications Technology (ICT), the accountants of an organization were using a socially acceptable behavioural method of reporting accounting and economic reports, carried out during accounting year ends, the preparation of accounting records, book such as the profit and loss account, the balance sheet, cash book, cash flow statement, income and expenditure accounts. The application of Information and Communication Technology (ICT), on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and indeed a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery. It is obvious that the biggest impact of Information and Communication Technology (ICT) has been made on accounting; and it is the ability of companies to develop and use computerized system to...
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...The impact of ICT on accounting practice in Nigeria CHAPTER ONE Introduction 1.1 Background of the study In the recent past centuries, before the inception of Information and Communications Technology (ICT), the accountants of an organization were using a socially acceptable behavioural method of reporting accounting and economic reports, carried out during accounting year ends, the preparation of accounting records, book such as the profit and loss account, the balance sheet, cash book, cash flow statement, income and expenditure accounts. The application of Information and Communication Technology (ICT), on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and indeed a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery. It is obvious that the biggest impact of Information and Communication Technology (ICT) has been made on accounting; and it is the ability of companies to develop and use computerized system to...
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...QUALITY AUDIT 9th Edition Karla M. Johnstone | Audrey A. Gramling | Larry E. Rittenberg CHAPTER 5 PROFESSIONAL AUDITING STANDARDS AND THE AUDIT OPINION FORMULATION PROCESS Copyright © 2014 South-Western/Cengage Learning LEARNING OBJECTIVES 1. 2. 3. 4. Identify and compare the various auditing standards that provide guidance on the audit opinion formulation process List and discuss the foundational principles underlying the auditing standards List the phases and related activities in the audit opinion formulation process Explain the concept of accounting cycles and discuss their importance to the audit opinion formulation process Copyright © 2014 South-Western/Cengage Learning 5-2 LEARNING OBJECTIVES 5. 6. 7. 8. Describe the assertions that are inherent to financial statements and explain their importance to the audit opinion formulation process Define audit evidence and describe the purpose and types of audit procedures used to obtain audit evidence Discuss the importance of audit documentation and provide examples Discuss audit activities in Phase I of the audit opinion formulation process Copyright © 2014 South-Western/Cengage Learning 5-3 LEARNING OBJECTIVES 9. 10. 11. 12. Discuss audit activities in Phase II of the audit opinion formulation process Discuss audit activities in Phase III of the audit opinion formulation process Discuss audit activities in Phase IV of the audit opinion...
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...authentication, as a second line of defense that protects information systems. Intrusion detection provides a way to identify and thus allow responses to, attacks against these systems. Second, due to the limitations of information security and software engineering practice, computer systems and applications may have design flaws or bugs that could be used by an intruder to attack the systems or applications. As a result, certain preventive mechanisms (e.g., firewalls) may not be as effective as expected. Intrusion detection complements these protective mechanisms to improve the system security. Moreover, even if the preventive security mechanisms can protect information systems successfully, it is still desirable to know what intrusions have happened or are happening, so that we can understand the security threats and risks and thus be better prepared for future attacks. IDSs may be classified into Host-Based IDSs, Distributed IDSs, and Network-Based IDSs according to the sources of the audit information used by each IDS. 1) Host-based IDSs get audit data from host audit trails and usually aim at detecting attacks against a single host. 2) Distributed IDSs gather audit data from multiple hosts and possibly the network that connects the hosts, aiming at detecting attacks involving multiple hosts. 3) Network-Based IDSs use network traffic...
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