Audit Proposal: Kudler Fine Foods
Audit Proposal
Zhongle King, Rebecca Kiritsy, Jo McClain, Jared Palmer
ACC 542
October 13, 2014
Irene Branum
Audit Proposal Kudler Fine Foods, a Southern California-based upscale specialty food store, hopes to expand operations. One step in the expansion is updating the company’s accounting information systems. Kudler’s management decided to enhance the payroll, accounts payable, account receivable and inventory accounting processes. Team B recommended industry-specific software to automate and standardize Kudler’s process. The team also suggests establishing an audit schedule to ensure the systems are reliable, secure, confidential, and available when needed. Below are a description of the four types of information system audits, …show more content…
Team B recommends an attestation audit for Kudler’s inventory processes. The auditor would examine the agreed upon controls for the processing of inventory and insure those procedures are followed.
How to Conduct Audits An IT audit involves several steps. Hunton, Bryant, and Bagranoff (2004) suggest following the steps in the audit life cycle:
1. Planning - An auditor must understand the client, identify the risks, and make proper assessment. During the planning stage, the auditor becomes familiar with personnel and work environment, creates an audit plan, and distributes the responsibility amongst the audit team.
2. Risk Assessment -Risk assessment involves analysis of current processes, testing the support process, and evaluating the effectiveness of controls. It also requires research and observation to understand the current process.
3. The Audit Program - Key elements during this stage include the audit scope, audit objectives, audit procedures, and administrative details.
4. Gathering evidence – The auditor may shadow current employees and observe current procedures, go through the records, or interview the Kudler’s employees independently.
5. Forming …show more content…
352) to verify controls are working and accurate data processing. However, certain events might prevent reliance on auditing through the computer. For instance, auditing through the computer assumes that the computer hardware is functioning properly. Improper function may prevent auditing through the computer. Similarly, if computer controls are weak or nonexistent, Kudler cannot rely on auditing through the computer. The auditor must review information system controls by assessing risks and identifying control procedures designed to prevent these threats before choosing to audit through the
Zhongle King, Rebecca Kiritsy, Jo McClain, Jared Palmer
ACC 542
October 13, 2014
Irene Branum
Audit Proposal Kudler Fine Foods, a Southern California-based upscale specialty food store, hopes to expand operations. One step in the expansion is updating the company’s accounting information systems. Kudler’s management decided to enhance the payroll, accounts payable, account receivable and inventory accounting processes. Team B recommended industry-specific software to automate and standardize Kudler’s process. The team also suggests establishing an audit schedule to ensure the systems are reliable, secure, confidential, and available when needed. Below are a description of the four types of information system audits, …show more content…
Team B recommends an attestation audit for Kudler’s inventory processes. The auditor would examine the agreed upon controls for the processing of inventory and insure those procedures are followed.
How to Conduct Audits An IT audit involves several steps. Hunton, Bryant, and Bagranoff (2004) suggest following the steps in the audit life cycle:
1. Planning - An auditor must understand the client, identify the risks, and make proper assessment. During the planning stage, the auditor becomes familiar with personnel and work environment, creates an audit plan, and distributes the responsibility amongst the audit team.
2. Risk Assessment -Risk assessment involves analysis of current processes, testing the support process, and evaluating the effectiveness of controls. It also requires research and observation to understand the current process.
3. The Audit Program - Key elements during this stage include the audit scope, audit objectives, audit procedures, and administrative details.
4. Gathering evidence – The auditor may shadow current employees and observe current procedures, go through the records, or interview the Kudler’s employees independently.
5. Forming …show more content…
352) to verify controls are working and accurate data processing. However, certain events might prevent reliance on auditing through the computer. For instance, auditing through the computer assumes that the computer hardware is functioning properly. Improper function may prevent auditing through the computer. Similarly, if computer controls are weak or nonexistent, Kudler cannot rely on auditing through the computer. The auditor must review information system controls by assessing risks and identifying control procedures designed to prevent these threats before choosing to audit through the