Audit Proposal
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Audit Proposal
Waleska Wojciak
University of Phoenix
April 5, 2010
Introduction
Control procedures are important in the efficient operation of an accounting information system (AIS). Organizations have audits to ensure procedures are functioning properly and there is no need for additional controls. This research of internal, external, financial, risk assessment, and information technology audits will examine and ensure that internal controls have been correctly placed and properly functioning. Kudler Fine Foods can use audits for their systems’ processes, as they involve information technology (Bergranoff, Nancy (2008)).
Types of audits
Internal or external audit concerns employee adherence to company policies, procedures, and development of internal controls. Audits on information technology involve the evaluation of the computer’s role in achieving audit and control objectives. These audits encompass the components of the computer-based AIS: people, procedures, hardware, data communications, software, and databases. They are broad in scope and include auditing for fraud and ensuring that employees are not copying software programs. The four types of information technology (IT) audits are: Attestation, Findings and Recommendations, SAS 70 Audit, and SAS 94 Audit.
The three types of IT audits that will be used at Kudler Fine Foods will be Attestation, SAS 94, and Financial Audit. IT auditors can use the Attestation and Financial Audits for accounts payable, accounts receivable, and payroll as they confirm that numbers on the financial statements are correct, internal procedures are compliant with COSO, and check sales contracts with third parties. For the inventory and payroll departments the SAS 94 Audit can be used as it helps auditors gain an understanding of how recurring and nonrecurring journal entries are initiated, entered, and processed through the companies information system and the IT components evaluated are:...
Waleska Wojciak
University of Phoenix
April 5, 2010
Introduction
Control procedures are important in the efficient operation of an accounting information system (AIS). Organizations have audits to ensure procedures are functioning properly and there is no need for additional controls. This research of internal, external, financial, risk assessment, and information technology audits will examine and ensure that internal controls have been correctly placed and properly functioning. Kudler Fine Foods can use audits for their systems’ processes, as they involve information technology (Bergranoff, Nancy (2008)).
Types of audits
Internal or external audit concerns employee adherence to company policies, procedures, and development of internal controls. Audits on information technology involve the evaluation of the computer’s role in achieving audit and control objectives. These audits encompass the components of the computer-based AIS: people, procedures, hardware, data communications, software, and databases. They are broad in scope and include auditing for fraud and ensuring that employees are not copying software programs. The four types of information technology (IT) audits are: Attestation, Findings and Recommendations, SAS 70 Audit, and SAS 94 Audit.
The three types of IT audits that will be used at Kudler Fine Foods will be Attestation, SAS 94, and Financial Audit. IT auditors can use the Attestation and Financial Audits for accounts payable, accounts receivable, and payroll as they confirm that numbers on the financial statements are correct, internal procedures are compliant with COSO, and check sales contracts with third parties. For the inventory and payroll departments the SAS 94 Audit can be used as it helps auditors gain an understanding of how recurring and nonrecurring journal entries are initiated, entered, and processed through the companies information system and the IT components evaluated are:...