...Audit Program Design Part II ACC/546 January 31, 2011 At Anderson, Olds, and Watershed, we have developed the following test of controls, substantive test of transactions, and analytical procedures for the audit of the sales and collection cycle, the payroll and personnel cycle, and the acquisition and payment cycle of Apollo Shoe Company. The tests are consistent with generally accepted auditing methods in The United States of America. The tests will be designed to prove existence, completeness, and accuracy. Please take the time to look over the proposed tests and techniques and feel free to ask any questions regarding the tests that will be performed. Sales and Collection Cycle To test for existence, AOW will verify whether sales invoices are attached to the bill of lading or not and check to see if there are any invoices with unusual transactions or amounts. Next, we will check completeness by verifying the sequence of sales documents and trace the selected sales documents through the sales and collection process. We will also verify the prices of selected sale items and recompute the sales invoices that are billed to the customer for accuracy. The next step is to verify the classifications of sales transactions by examining the document package for internal verification and examining sales invoices for proper account classifications. The final audit objective test will consider timing. We will verify that sales are recorded on the correct dates. We will also verify...
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...Audit Program Design Part II Company: Apollo Shoe Company Audit Begins: January 19, 2010 Audit Ends: March 31, 2010 (Tentative) AUDIT SCOPE: Sales/revenue and collection cycle Payroll and personnel cycle Acquisition and payment cycle All Transactions, orders, and payments processed January 1, 2007 through December 31, 2007 AUDIT OBJECTIVES: • To determine internal control compliance to sub objectives for payroll and personnel cycle, sales/revenue and collection cycle, and the acquisition and payment cycle. • To obtain control evidence and documentation about the existence, accuracy, classification, timing and completeness of recorded acquisition transactions. CRITERIA: Statement on Auditing Standards (SAS) No. 99 – Fraud Auditing Standards AUDITOR ASSIGNMENTS: John Butler – Sales and Collection David Sargent – Payroll and Personnel Perry Boydstun – Acquisition and Payment Cycle METHODOLOGY: Each auditor will perform their assigned area of tests of controls and substantive test using sampling techniques as appropriate. Strengths and weaknesses’ should be denoted by using a “S” or “W” on each area applicable area of the flowchart and checklist of each assigned area. The summary status (“Ss” and “Ws”) will be listed in the bridge worksheet for SOX 404 Audit analysis. Bridge Worksheet for Sales and Collection Cycle – SOX 404 Audit Public companies typically rely heavily on proper internal controls to maintain an effective sales...
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...Audit Program Design Part II ACC/546 May 2, 2011 Audit Program Design Part II The audit of Apollo Shoes, Inc. requires a design of steps to develop audit objectives to plan the audit. The financial statements are divided into cycles to better manage the audit and disperse to staff within the firm. The following cycle’s sales and collection, payroll and personnel and acquisition and payment were developed to design test of controls, substantive tests of transactions and analytical procedures. Anderson, Olds, and Watershed, LLP will be designing test of controls, substantive tests of transactions and analytical procedures for Apollo. This will allow our firm to better understand the internal controls within their company along with making sure the company is in compliance with the requirements of the Sarbanes-Oxley Act of 2002 and generally accepted accounting principles. Sales & Collection cycle Sales and collections audits test financial information relating to the sales of goods and services to consumers and the payment collection for these sales. In Apollo shoes audit AOW will involve the decisions and processes necessary for the transfer of the ownership of goods and services to customers after they are made available for sale; it begins with a request by a customer and ends with the conversion of material on service into an account receivable and ultimately into cash. There are several functions include in this cycle such as processing customer...
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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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...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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...BUSINESS ADMINISTRATION DEPARTMENT OF FINANCE AND ACCOUNTING ACCT 432: AUDITING 1 COURSE OUTLINE GENERAL OBJECTIVE To introduce students to the concept of the audit of financial statements and the issues surrounding the audit of such statements EXPECTED LEARNING OUTCOMES By the end of the course, the student is expected to be able to; a) b) c) d) e) f) Explain what is an audit and the qualifications and duties of an auditor Understand the legal and professional rules governing the audit and the auditor Able to design an adequate internal control system Able to design an audit plan and an audit program to conduct an audit Able to audit a computerized client Able to design an audit report Week Topics Content Time (Hours) Definition of auditing 3 Distinction between auditing and accounting Objectives of an audit Types of audits Appointment of an auditor Qualifications of auditors 6 1 GENERAL ENVIRONMENT AUDIT 2-3 THE LEGAL PROFFESIONAL AND Week Topics Content Time (Hours) Rights of auditors Dismissal and duties of auditors REQUIREMENTS AUDITOR 4 OF AN CONDUCTING AN AUDIT 5-6 ERRORS, FRAUD AND OTHER IRREGULARITIES 7 INTERNAL SYSTEMS CONTROL 8 9-10 CAT AUDIT EVIDENCE General audit steps 3 Accepting an audit engagement Letter of engagement Planning an audit Types of errors 6 Fraud Detection, correction and prevention of errors and fraud Role of the auditor in respect of detection and prevention of errors and fraud...
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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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...Towards Effective Succession Planning 9 2.1.2 Measures For Effective Succession Planning 13 2.1.2.1 Part A Measures: Group 1 -- Basic Plan Usage Factors. 13 2.1.2.2 Part A Measures: Group 2 -- Assessing Whether Your Plan Contains Key Design Features 14 2.1.2.3 Part B Measures: Group 3 -- Operational Indications Of Plan Success. 15 2.1.2.4 Part B Measures: Group 4 -- Measures Of Direct Business Impacts 16 2.1.2.5 Part B Measures: Group 5 -- Indications Of Plan Failure 17 2.2 Empirical Studies Of Succession Planning 18 3.0 Research Methodology 20 3.1 Introduction: 20 3.2 Research Design: 20 3.3 Area Of The Study: 20 3.4 Unit Of Enquiry: 20 3.5 Sample Size And Sampling Procedure: 21 3.5.1 Sample Size. 21 3.5.2 Sampling Technique 21 3.6 Data Collection Methods: 22 3.6.1 Questionnaires: 22 3.6.2 Interview: 22 3.6.3 Participant Observation: 22 3.6.4 Documentation: 22 3.7 Work Plan and Research Budget...............................................................................22 3.7.1 Research Activities & Work Plan.....................................................................22 3.7.2 Budget………………………………………………………………………..23 REFERENCES………………………………………………………………………….24 APPENDICES…………………………………………………………………………..26 Appendix I - Questionnaire for Employees……………………………………...26 Appendix II- Questionnaire for Heads of Department………………………….30 CHAPTER ONE: 1.0 Introduction and...
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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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...com/journal-detail.php?id=5007 INNOVATIONS IN ACADEMIC PERFORMANCE AUDIT (APA) TO EMPOWER TEACHING & LEARNING: THE UNITEN EXPERIENCE Zainal Ariffin Ahmad Graduate Business School, College of Graduate Studies, UNITEN, Kajang Malaysia Norsalwati Binti Mohd Razalli Quality Management Centre,UNITEN, Kajang Malaysia ABSTRACT Institutional audit is an integral part of the quality assurance process in the Malaysian higher education to determine whether the institution is achieving its mission and goals, to identify strengths and areas of concern, and to enhance quality. One form of institutional audit is the periodic academic performance audit to determine the continuation or maintenance of programme accreditation status. In 2011, UNITEN conducted an institutional audit (Academic Performance Audit) exercise to prepare for SETARA 2012 or the Rating System for Higher Education Institutions in Malaysia. UNITEN was conferred SETARA Tier 5 - Excellent in 2012 compared to Tier 4 in 2009. Based on action science approach, this paper discusses the lessons learned during the Academic Performance Audit (APA) conducted in 2011 and how they empowered the teachinglearning environment at UNITEN. It will also highlight the three innovations introduced in the APA process. Keywords:Academic Performance Audit (APA), Rating system (SETARA), Action science, teaching-learning, Innovation. 1. INTRODUCTION Institutional audit is an integral part of the quality assurance process in the Malaysian higher...
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...Do not bring any material into the examination room unless permission is given by the invigilator. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This test paper consists of 8 printed pages 2 TEST 1 PART A This part consists of 20 multiple-choice questions. Choose the most suitable answer and shades the corresponding alphabet representing the answer. 1. Among the objectives of an operating system are as follows EXCEPT a. b. c. d. the operating system must protect itself from users the operating system must protect users from each other the operating system must protect users from themselves the operating system must be totally free from errors 2. One of the criteria for accessing the firewall effectiveness is _______________ a. authorization b. flexibility c. supervision d. access control 3. Electronic fund transfer is adopted by EDI trading partners due to implication on ________ a. b. c. d. Audit trails of transactions Cash disbursement and receipts Complexity of product delivery High cost running the EDI maintenances 4. The following are common types of denial of services attack EXCEPT a. b. c. d. SYN flood attack IP spoofing Smurf attack Distributed denial of services 5. The modular design in PC systems provides users with some degree of flexibility in tailoring systems to their specific needs. Which of the...
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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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...Audit Program Design Part Ii Audit Program Design Part II Company: Apollo Shoe Company Audit Begins: January 19, 2010 Audit Ends: March 31, 2010 (Tentative) AUDIT SCOPE: Sales/revenue and collection cycle Payroll and personnel cycle Acquisition and payment cycle All Transactions, orders, and payments processed January 1, 2007 through December 31, 2007 AUDIT OBJECTIVES: • To determine internal control compliance to sub objectives for payroll and personnel cycle, sales/revenue and collection cycle, and the acquisition and payment cycle. • To obtain control evidence and documentation about the existence, accuracy, classification, timing and completeness of recorded acquisition transactions. CRITERIA: Statement on Auditing Standards (SAS) No. 99 – Fraud Auditing Standards AUDITOR ASSIGNMENTS: John Butler – Sales and Collection David Sargent – Payroll and Personnel Perry Boydstun – Acquisition and Payment Cycle METHODOLOGY: Each auditor will perform their assigned area of tests of controls and substantive test using sampling techniques as appropriate. Strengths and weaknesses’ should be denoted by using a “S” or “W” on each area applicable area of the flowchart and checklist of each assigned area. The summary status (“Ss” and “Ws”) will be listed in the bridge worksheet for SOX 404 Audit analysis. Bridge Worksheet for Sales and Collection Cycle – SOX 404 Audit Public companies typically rely heavily on proper internal controls to maintain...
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...of auditing is to present an accurate account of a company's financial business transactions. This practice is used for companies to make sure that they are trading financially fairly and also that the accounts they are presenting to the general public or shareholders are true and justified. These financial auditing results can be presented to shareholders, banks and anyone else with an interest in the company. One of the main reasons for a financial audit is to ensure that the company is not making any fraud. This is why the financial auditing body should be an independent third party. AR = Audit risk: is the risk that the auditor will incorrectly issue an unqualified opinion. IR = Inherent risk: is the risk of material misstatements absent any internal controls or testing. CR = Control risk: is the risk that internal controls will fail to prevent or detect material misstatement. DR = Detection risk: is the risk that audit tests will fail to detect material misstatement. i) In this planning of the audit, the three audit areas which appear to have high inherent risk in my opinion are: 1. Sales system: Gala restaurant is owned by husband and wife, and each of them has a 50% of the company share and they are both directors of the company, Gala has been making good sales and there usually done by cash but it also accepts card payment and cheque. However, at the end of each day there is different between amount in the till and the one showing on the till roll. And again...
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