Kathy Kudler owner of Kudler Fine Foods established her first grocery store in the city of LaJolla in 1998. After the wide success experience a decision to open another location brought forth the next location in the city of Del Mar and finally a store in Encinitas culminated the foresight of providing gourmet food options. Kathy over the years laboriously serves as the head manager for the three locations. As a result of this, enhance added to the normal functionalities of the annual audit to build a process required for the audit to team to comply. Because of the volume and capacity of each location, arrangements to provide a proposed audit schedule. An analysis of possible audit features to advise the client through the procedure to review in the audit proposal the purpose of this audit schedule.
I. Distinguish between the types of IT audits and which types(s) might be used for each process (Payroll, A/P, A/R, and Inventory)
The IT audit includes “attestation, findings and recommendations, SAS 70 Audit, and SAS 94 Audit” (Hunton, 2004 ). An auditors’ attestation engagement enforces an assurance to keep the company responsible for maintaining the internal control. Accounts receivable and payable managed by the organization to ensure business procedures remain in place of maintaining the reasonableness of the financial statement. This can be achieved by reviewing ratio analysis and recalculating the data. Outsourcing to a third party, such as Ceridian specializing in payroll services can aid in benefiting the level of clarity exchange. It becomes difficult during the duration of an audit to calculate the number of hours, rate, and deductions based on each employee. During audit period, an auditor can request a service provider, such as Ceridian if it had undergone SAS (Statement on Auditing Standards) 70 Audit to populate a report. If an external audit firm retained to ensure the internal controls work effectively based on the service...