CASE STUDY #1
Assume an E-commerce company that sells various products over the internet to consumers. One certification from an auditor that states the company has:
A. Effective policies to ensure the following objectives. B. Those policies are implemented in a manner to achieve these objectives.
a) All goods are shipped in a timely fashion.
b) The goods are exactly as advertised.
c) The company stands behind any goods that are damaged in transit. d) The company fulfills promises made in its credit policies. e) Credit card and billing information kept safe and is not sold to other retailers.
A. For each of the assurances (a-e), indicate the evidences the auditor would gather in order to provide the assurance desired.
a. The auditor can take samples of orders of each product and trace the shipping evidence like tracking numbers, acknowledgement receipt, shipping memorandums and other evidences related to shipping transactions. The auditor can take also take samples of customer complaints or inquiries and determine if there is a pattern of customers complaining that goods are not received in a timely fashion.
b. The auditor can take a sample of advertisements (i.e. images from the website) and compare the qualities as advertised with a sample of the actual product.
c. The auditor can take a sample of complaints or credit adjustments requests submitted by customers. Determine whether or not the requests were handled consistently and had been taken into action immediately following the specific company policy.
d. The auditor can take samples of credit sales and supporting documents such as invoices. Determine if sales are billed according to company policy and if interests, if applicable, are billed according to company policy and is fulfilled as written in the invoices or applicable documents of credit sales transactions.
e. The auditor can inquire if company policies are designed to safeguard...
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