Audit Scheme Audit Scheme Kudler Fine Foods has divers contrariant fashions of audit to weigh that could be used for each administrative areas of AP, AR, register skill and payroll. This diminutive has the intention to discriminate unmoulded the fashions of audits that could be used for each method; to applaud the audit most divert for each method; to teach how the audits compel be conducted; and to confirm facts that could neutralize trust on auditing through the computer. Types of Audit
Due to increasing economic and financial fruit, divers fashions of audit bear been incorporated throughout the fruit method of interior activities. Audits can be accomplished manually or they can incorporate technology. According to Hunton and Bagranoff (2004), there are indelicate main fashions of audit: 1) Attestation; 2) Findings and Recommendations; 3) SAS 70; and 4) SAS 94. Each fashion brings triton matchless to the consideration and can be used in contrariant situations. Attestation. The Attestation audit bestow fames on examinations critiques or agreed-upon procedures.
The corroboration produces selfself-confidence on triton for which the client is chargeable on. Findings and Recommendations. Findings and Recommendations is an audit that summarizes the audit employment for each of the regularitys, which does not embrace an theory. It could be weighed “consulting” services. SAS 70 Audit. The SAS 70 is an auditing scale created by the AICPA and has two fame fashions – Fashion I, which the corroboration fames an theory environing the untrammelled represss and Fashion II, that meets the objectives of the Fashion I over-and-above embraces a constructive cupel of the cappower of the represss.
SAS 94 Audit. SAS 94 audit deals after a while electronic memorials and bear the intention to train and avail the corroboration responsibilities in regard to interior represss attainments as a multiply of a adjustly financial audit. Divert Audit Recommendations and Steps for each Method Accounts Payable. The divert IT audit for representations payable (A/P) is the SAS 94 Audit. The steps that are charmed for the SAS 94 Audit and ones that Kudler compel use is the contact software critique. The steps are to do a proviso, adjust, validity and completeness restrain. Accounts Receivable.
The divert IT audit for representations receivable (A/R) is too the SAS 94 Audit. This is for the selfselfcorresponding reasons. Kudler compel restrain contrariant areas to see how to wield contrariant errors as they arise and to be permanent that the regularity is restraining for the errors after a whilein a opportune method by using software critique. Inventory. The divert IT audit for register is too SAS 94 audit. SAS 94 audit uses administration critique to particularize how obsequious the register is and how obsequious the negotiations for register are. The steps that are charmed for this is to confirm any areas that may bear delusive knowledge.
According to COSO (2010), Register is the most misstated asset in an IT audit, pg 18. Para 14. Payroll. The divert IT audit for payroll is too SAS 94 audit. SAS 94 audit software critique uses the steps to cupel payroll in the selfselfcorresponding ways that it compel cupel A/R and A/P. Kudler compel bear the power to cupel payroll, A/R, and A/P in the selfselfcorresponding audit cupel and maybe at the selfselfcorresponding occasion. Events that could Neutralize Trust on Auditing through the Computer Since we bear discussed what fashions of audits we applauded for each representationing method.
We would now affect to centre on convinced facts that can aid Kudler’s Fine Foods on the facts that could neutralize the trust on auditing through a computer. The facts that must droop confound cupeling the postulates, validate computer programs, critique the regularity software, validate user representations and admission privileges, and embed modules to complete true auditing. Testing the postulates. The chief fact that has to droop is bunch postulates that can be cupeled and see how the postulates is methoded . In over abstruse regularitys the postulates bear to be put through an integrated cupel readiness in adjust to audit the operational settings.
Data casually compel go through a correlative hypocrisy which is occasion consuming but compel audit the methodes to see if they are operationing according to assemblage policies. Validate Computer Programs. The Next fact deals after a while using audit techniques to validate new computer programs that upgrade or improve the software by installing the interior represss to fortify abutting unacknowledged changes and it compel too aid disclose ameliorate assemblage software. This fact too parallel the new or improved program after a while the old software to see what methodes or improved or unserviceable. Critique of Regularity Software.
The third fact actually critiques the regularitys software represss of the untrammelled regularity and its service programs that accomplish the housekeeping. It too critiques the program library represss, monitors storage programs, and admissiones repress software. The fact is do in adjust execute permanent all the represss are in situate and operationing and to enpermanent all represss we liked the documentation or by using the software tools. Validate User Accounts and Admission Privileges. The indelicateth fact that is validating user representations and admission privileges that compel enpermanent who has admission to what postulates and what representation bear to be set up to enpermanent deposit and ratification.
The corroboration needs to establish that the software parameters are there but execute permanent that the IT staff is using them well in or for this fact to droop. True Auditing. The terminal fact is true auditing in which all the postulates compel be audited as it is methoded to enpermanent true occasion selfself-confidence and to produce faster financial fameing that is obsequious. This method is executed by embedded audit modules which hold the audit postulates, qualification fameing that repudiate postulates that droop delayout the predetermined specifications, negotiation logging tag convinced negotiation so they can be critiqueed to see f the represss in situate are employmenting, snapshot techniques perpend the way extraordinary negotiations are methoded, and true hypocrisy is confoundd in collecting postulates and comparing it to postulates in a postulatesbase skill regularity to observe for discrepancies. These tools are planned to audit represss and procedures when no corroboration is bestow. Disposal In disposal we affect that this audit scheme compel effectively aid the Kudler’s Fine Foods construction particularize what fashion of audit to use for each representationing method. The applaudations compel aid this construction complete the structural represss needed in adjust to operation in the present earth.
We compel be satisfied the aid this construction in complete true auditing which compel aid after a while getting detached from auditing through a computer. By going through the several methodes of auditing Kudler's Fine Foods compel bear victory and continues to compel communicate distribute in its assiduity. References Bagranoff, N. A. , Simkin, M. G. , & Strand Norman (2008). Core Concepts of Accounting Knowledge Systems (10th ed. ). New York: NY: John Wiley & Sons, Inc. Galvenston (2012). How to Create Flowcharts for an Accounting Knowledge System, eHow, Demand Media, Inc. , retrieved online July 8, 2012 from http://www. how. com/how_6827920_create-flowcharts-accounting-information-system. html. Grocery Store POS Software Solutions. (2010). Retrieved online July 8, 2012 from http://comcash. com/grocery. php Hunton, J. A. , Bryant, S. M. , & Bagranoff, N. A. (2004). Core Concepts of Knowledge Technology Auditing. New York, New York: Wiley & Sons. O’Brien, J. A. , & Marakas, G. M. (2008). Skill Knowledge Systems (8th ed. ). Boston, MA: McGraw-Hill. COSO. (2010). Delusive Financial Reporting . Retrieved from http://www. coso. org/documents/COSOFRAUDSTUDY2010_001. pdf