Wk 4 Learning Team Assignment
Audits Companies, nonprofit organizations and the government use auditing, audits are used to look for inconsistencies in their financial statements, and internal controls (Bianca). There are different types of audits that could be requested by companies: Daily cash report audits, department level audit, data quality audit and purchasing system audits.
Daily cash report audits Daily cash report audits are the most basic of the audits, this type of audit consists of one person checking another persons work (Bianca). For example cash that is handles within a company by anyone there is a need for a daily cash report which where the employee totals the amount of payments taken that day, later another employee will check the reports to ensure all the numbers match (Bianca).
Department level audits Department level audits include reviewing how a department runs and whether they perform in compliance of company’s policies and procedures (Bianca). Within this type of audit the auditor may look at the companies financial transactions, and the companies travel records to ensure billing has been done correctly and is accompanied by sufficient documentation (Bianca).
Data quality audits Data quality audits consist of external auditors, such as those from donor organizations and regulatory agencies, conducting audits to determine the quality of a programs operations (Bianca).
Purchasing system audits Purchasing system audits is used by large organizations, these are set up by the organization to ensure their operating procedures and internal controls are being followed (Bianca). When the organization sets up a purchasing department with different purchasing agents, and also requires each department to complete a purchase requisition and then have it reviewed by an agent prior to ordering goods they have set up a purchase agents as their auditors (Bianca).
Auditing standards Auditing standards are those rules that CPA’s must follow and how they must
Daily cash report audits Daily cash report audits are the most basic of the audits, this type of audit consists of one person checking another persons work (Bianca). For example cash that is handles within a company by anyone there is a need for a daily cash report which where the employee totals the amount of payments taken that day, later another employee will check the reports to ensure all the numbers match (Bianca).
Department level audits Department level audits include reviewing how a department runs and whether they perform in compliance of company’s policies and procedures (Bianca). Within this type of audit the auditor may look at the companies financial transactions, and the companies travel records to ensure billing has been done correctly and is accompanied by sufficient documentation (Bianca).
Data quality audits Data quality audits consist of external auditors, such as those from donor organizations and regulatory agencies, conducting audits to determine the quality of a programs operations (Bianca).
Purchasing system audits Purchasing system audits is used by large organizations, these are set up by the organization to ensure their operating procedures and internal controls are being followed (Bianca). When the organization sets up a purchasing department with different purchasing agents, and also requires each department to complete a purchase requisition and then have it reviewed by an agent prior to ordering goods they have set up a purchase agents as their auditors (Bianca).
Auditing standards Auditing standards are those rules that CPA’s must follow and how they must
Bibliography: Bianca, A. (n.d.). Chron.com. Retrieved August 17, 2012, from What are examples of Auditing?: http://smallbusiness.chron.com/examples-auditing-18680.html Kim M Clark. (n.d.). What Are Generally Accepted Auditing Standards? Retrieved August 19, 2012, from eHow Money: http://www.ehow.com/about_4759920_what-generally-accepted-auditing-standards.html