Segregation of Duties is a crucial component for a business to have effective internal controls. In general, custody of assets, authorization or approval of related transactions affecting those assets, and recording or reporting of related transactions, require segregation of duties. The current routine that Dogs N’ Thangs follows, does not have the procedures that consist of a strong internal control. Having only one employee responsible for all related cash account movement can expose the company to human error. Giving…
Kudler Fine Foods is a chain of specialty food stores that provide the finest food and wines to the general public. There are three locations of Kudler Fine Foods:…
8. Review the list and master file for related parties, notes or other interest-bearing liabilities, long-term payables, and debit balances.…
The audit will include examining evidence supporting the amounts and disclosures in the financial statements and will involve judgment about the number of transactions to be examined and the areas to be tested. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of physical existence of inventories, and direct confirmation of certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. In connection with our audit of the financial statements, we will obtain an understanding of internal control sufficient to plan the audit and to determine the nature, timing and extent of audit procedures to be…
At this point I don’t know where we go from here. All I can do at this point is again suggest that since the validity of the financial reconciliation report is being questioned, we should follow in the steps that we need to request assistance or an independent CPA to conduct a review of last years…
The December 31, 2011 audit was performed by a solo practitioner who may not have had the technical expertise to deal with complex equity transactions. Since the December 31, 2011 balance sheet will be presented in the 2012 financial statements, you will need to perform procedures to gain assurance over the December 31, 2011 balances. As a result, you needed to ensure that the…
-Conduct a cross-footing and zero-balanced test to verify the accuracy of the method used. There should be a prompt correction and re-processing of erroneous transactions.…
Existence – Record the purchase orders in standard form as soon as sales reps receive them.…
Recommendations to avoid errors and potential fraud are to appoint another person to overview and check the work. Another option is to employ second trained person or train one of the current employees to help Payroll and Personnel Database Clerk in duties, as well as replace in case of illness or holidays or to train one of the current employees from another department.…
| |Upon review, you will be provided with clear guidance about any areas that are deemed Unsatisfactory, and how |…
Give a brief statement of the purpose of the report and how the report is organized…
To analyze underlying data and to support tests of controls and direct tests of account balances…
Phase I: Plan and Design an Audit Approach. In every audit there exist several ways an auditor can gather proof to congregate the general audit purpose of offering an opinion on the financial statements. There are two principal concerns that change the approach the auditor choose: adequate proper evidence must be collected to meet the auditor’s professional responsibility and the cost of collecting the evidence should be reduced. Three segments forms planning and designing an audit approach and those are: acquiring an understanding of its environment and the entity, recognize internal control and assess control risk and the last assess risk of material misstatement.…
* It is carefully and clearly laid out: logically ordered, easy to read and not cramped…
* Maintain the BCP/DR related records for the bank. Ensure the organizations’ conformance and alignment to the regulatory BCP/DR requirements, ensuring that gaps are identified (if any) and mitigated…