MACC program
Part 1: The Initial Audit
1) What additional work could the Internal Audit Department perform prior to issuing the audit report?
The internal audit’s work is necessary to the entity. The internal audit can accumulate evidences from different documents, statements and reports. Their reprehensibility is to provided reasonable assurance in entity’s daily operation. In this case, there are some materials has been founded in MCS. From my opinion, the internal audit could pay more attention on the manager’s internal control evaluation. The additional work can be started by evaluating all financial records to ensure the accuracy of the financial statements, and reviewing administrative control with the university policy and regulations to make the operational effectiveness and efficiency. In addition, the internal auditors could make the assessment of risk factors, and identify several evidence to determine which areas should be included and promoted. All these risk factors should be detected based in the dollar materiality and each detailed transactions. In order to identified the risks, the internal audit should review the financial statements carefully and understanding each transactions clearly.
2) What recommendations to the campus computing services director and the university administration would be appropriate for the MCS?
I do recommend the campus computing services director and the university administration to focus on promoting the internal control to make the management more effective. The valid internal control is the assurance of daily operation. The effective controls reduce the risk of asset loss and help ensure that plan information is complete and accurate, financial statements are reliable, and that the plan complies with laws and regulations.
Part 2: The Plot Thickens
1) At what point should the Internal Audit Department suspect a fraud? What actions should be considered to ensure that professional auditing standards are met? Whom does
1) What additional work could the Internal Audit Department perform prior to issuing the audit report?
The internal audit’s work is necessary to the entity. The internal audit can accumulate evidences from different documents, statements and reports. Their reprehensibility is to provided reasonable assurance in entity’s daily operation. In this case, there are some materials has been founded in MCS. From my opinion, the internal audit could pay more attention on the manager’s internal control evaluation. The additional work can be started by evaluating all financial records to ensure the accuracy of the financial statements, and reviewing administrative control with the university policy and regulations to make the operational effectiveness and efficiency. In addition, the internal auditors could make the assessment of risk factors, and identify several evidence to determine which areas should be included and promoted. All these risk factors should be detected based in the dollar materiality and each detailed transactions. In order to identified the risks, the internal audit should review the financial statements carefully and understanding each transactions clearly.
2) What recommendations to the campus computing services director and the university administration would be appropriate for the MCS?
I do recommend the campus computing services director and the university administration to focus on promoting the internal control to make the management more effective. The valid internal control is the assurance of daily operation. The effective controls reduce the risk of asset loss and help ensure that plan information is complete and accurate, financial statements are reliable, and that the plan complies with laws and regulations.
Part 2: The Plot Thickens
1) At what point should the Internal Audit Department suspect a fraud? What actions should be considered to ensure that professional auditing standards are met? Whom does