Audit Proposal - 1ç
Audit Proposal—Kudler Fine Foods Previously Kudler Fine Foods had asked accounting firm 123 Accounting for their recommendation on a system which would improve automation in their business processes. Accounting firm 123 Accounting provided Kudler with a recommended course of action to take towards automating their accounting information system, as well as provided a flowchart to assist in describing the process by which the software will help management consolidate their financial data. Currently Kudler is asking accounting firm 123 Accounting for a proposal for audit schedules for the systems previously mentioned. This report will briefly outline an audit proposal, from 123 Accounting , on the previously analyzed systems to include; payroll, accounts payable, accounts receivable, and the inventory process. This report will 1) distinguish between a few different types of audits available for Kudler. 2) Recommend an audit appropriate for each of the mentioned processes. 3) Give an explanation on how the audits would be conducted. 4) Lastly, 123 Accounting will identify events that might prevent reliance on auditing through the computer.
Different Types of Audits Available There are various types of audits available when it comes to examining accounting information systems. All audits should be able to evaluate obtained evidence which can determine if – for this instance, information systems – process are operating effectively and there is a strong comfort in the integrity of the data. Typically information systems audits are performed in conjunction with financial statement audits or internal audits, however, an examination may be performed whenever management/clients deem necessary. Technology and Strategy authors Richard Goodman and Michael Lawless suggest three approaches in carrying out IT audits. 1) Technological innovation process audit: An audit that evaluates and assesses the company’s experience in the chosen system and creates a risk profile
Different Types of Audits Available There are various types of audits available when it comes to examining accounting information systems. All audits should be able to evaluate obtained evidence which can determine if – for this instance, information systems – process are operating effectively and there is a strong comfort in the integrity of the data. Typically information systems audits are performed in conjunction with financial statement audits or internal audits, however, an examination may be performed whenever management/clients deem necessary. Technology and Strategy authors Richard Goodman and Michael Lawless suggest three approaches in carrying out IT audits. 1) Technological innovation process audit: An audit that evaluates and assesses the company’s experience in the chosen system and creates a risk profile
References: Hunton, J. A., Bryant, S. M., & Bagranoff, N. A. (2004). Core concepts of information technology auditing. New York: Wiley & Sons. Retrieved from University of Phoenix ACC/542 Accounting Information Systems course website.