Audit Proposal Audit Pitch Kudler Fine Foods has many different types of audit to consider that might be used for every single functional aspects of AP, FLADEM?L, inventory management and salaries. This brief has the purpose to distinguish among the types of audits which can be used for every single process, to recommend the audit most suitable for each procedure, to explain how the audits will probably be conducted, and also to identify events that could stop reliance in auditing through the computer. Types of Review
Due to increasing economic and financial development, many types of review have been incorporated throughout the development process of inner activities.
Audits can be performed physically or they can incorporate technology. According to Hunton and Bagranoff (2004), there are several main types of examine: 1) Attestation, 2) Results and Advice, 3) SAS 70, and 4) SAS 94. Each kind brings anything unique in the relationship and can be found in different circumstances. Attestation. The Attestation taxation present information on exams reviews or agreed-upon procedures.
The auditor provides confidence on some thing for which the client is responsible. Findings and Recommendations. Findings and Suggestions is a great audit that summarizes the audit improve each of the systems, which does not include an opinion. It might be considered “consulting services. BARRIÈRE 70 Review. The BARRIÈRE 70 is usually an auditing standard created by the AICPA and provides two report types ” Type I actually, which the auditor reports an opinion about the operating controls and Type II, that meets the objectives with the Type I additionally includes a detailed test out of the success of the controls.
SAS 94 Audit. OBSTACLE 94 audit deals with digital records and enjoying the purpose to guide and lengthen the auditor responsibilities in comparison with internal settings knowledge as an element of a regular economic audit. Ideal Audit Suggestions and Methods for each Process Accounts Payable. The appropriate IT audit to get accounts payable (A/P) is definitely the SAS 94 Audit. The steps that are used for the SAS 94 Audit and ones that Kudler will use is the program software review. The steps are to do a limit, range, validity and completeness check. Accounts Receivable.
The proper IT taxation for accounts receivable (A/R) is also the SAS 94 Audit. To the same factors. Kudler can check different areas to see how to deal with different problems as they arise and to ensure that the system can be checking pertaining to the errors within a on time manner through the use of software review. Inventory. The proper IT examine for inventory is also BARRIÈRE 94 examine. SAS 94 audit uses administration review to determine how accurate the inventory is usually and how accurate the orders for products on hand are. Things that are considered for this should be to identify virtually any areas which may have bogus information.
According to COSO (2010), Products on hand is the most misstated asset in an IT audit, pg 18. Para 18. Payroll. The proper IT examine for payroll is also OBSTACLE 94 audit. SAS 94 audit software program review uses the steps to test payroll inside the same ways in which it will test out A/R and A/P. Kudler will have the ability to test payroll, A/R, and A/P in the same audit ensure that you possibly at the same time. Events that could Prevent Dependence on Auditing through the Pc Since we certainly have discussed what kinds of audits we recommended for each and every accounting method.
We would now like to focus on certain situations that can assist Kudler’s Fine Foods within the events that may prevent the reliance on auditing through a computer system. The events that must happen entail testing the information, validate computer system programs, assessment the system application, validate end user accounts and access benefits, and add modules to attain continuous auditing. Testing the data. The initially event that has to happen is definitely gathering info that can be tested and see how the data is processed. Much more complex devices the data need to be put through an integrated test service in order to audit the detailed settings.
Data sometimes is going through a parallel simulation which can be time consuming but will audit the processes to see if they can be functioning according to organization policies. Confirm Computer Applications. The Next event deals with using audit processes to validate new computer applications that upgrade or enhance the software by simply installing the interior controls against unauthorized alterations and it will also help develop better firm software. This also review the new or perhaps enhanced system with the outdated software to determine what techniques or increased or pointless. Review of System Software.
Another event actually reviews the systems application controls from the operating system as well as utility programs that execute the house cleaning. It also opinions the program catalogue controls, displays storage programs, and has access to control software program. The event is usually do as a way make sure all of the controls happen to be in place and functioning and to ensure every controls all of us approved the documentation or by using the submission software tool. Validate Customer Accounts and Access Privileges. The fourth celebration that is validating user accounts and access privileges that could ensure who have access to what data and what accounts have to be set up to ensure secureness and precision.
The auditor needs to verify that the application parameters is there but ensure that the IT staff is usually using them properly in or perhaps for this function to happen. Ongoing Auditing. The final event is usually continuous auditing in which every one of the data will be audited since it is processed to assure real time peace of mind and to provide faster monetary reporting that is certainly accurate. This process is done simply by embedded audit modules which capture the audit info, exception reporting that deny data that fall outside of the predetermined requirements, transaction working tag selected transaction for them to be examined to see farrenheit the regulates in place will work, snapshot approaches examine the way special orders are refined, and constant simulation can be involved in collecting data and comparing it to data in a database software management system to find discrepancies. They are designed to taxation controls and procedures the moment no auditor is present. Realization In conclusion all of us feel that this audit proposal will effectively help the Kudler’s Fine Foods firm determine what kind of audit to use for each accounting process. The recommendations may help this organization achieve the structural controls needed to be able to function in the modern world.
We will be delighted the help this kind of organization in achieve continuous auditing which will help with leaving from auditing through a computer system. By experiencing the various operations of auditing Kudler’s Fine Foods will have achievement and continues to gain business in its market. References Bagranoff, N. A., Simkin, Meters. G., , Strand Norman (2008). Main Concepts of Accounting Details Systems (10th ed. ). New York: NY: John Wiley , Daughters, Inc. Galvenston (2012). How to Create Flowcharts for an Accounting Data System, eHow, Demand Media, Inc., gathered online July 8, 2012 from http://www. how. com/how_6827920_create-flowcharts-accounting-information-system. html. Supermarket POS Software Solutions. (2010). Recovered online September 8, 2012 from http://comcash. com/grocery. php Hunton, J. A., Bryant, S. M., , Bagranoff, N. A. (2004). Core Concepts info Technology Auditing. New York, Ny: Wiley , Sons. O’Brien, J. A., , Marakas, G. M. (2008). Managing Information Systems (8th education. ). Boston, MA: McGraw-Hill. COSO. (2010). Fraudulent Economical Reporting Gathered from http://www. coso. org/documents/COSOFRAUDSTUDY2010_001. pdf
