to five key internal control objectives of Goodner’s Huntington sales office. • Existence – Record the purchase orders in standard form as soon as sales reps receive them. • Rights and obligations – Limit rights for sales reps. • Completeness – Record the purchase order‚ ship the inventory‚ and receive payment. • Valuation – Keep accuracy for the value. 2. List the key internal control weaknesses that were evident in the Huntington unit’s operations. • Ineffective controls of physically
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CONSIDERATION OF INTERNAL CONTROLS IN AN EDP ENVIRONMENT The second standard of field work requires that we obtain a sufficient understanding of the client’s internal controls (I/C) to plan the audit and assess control risk. We hope that our assessment of control risk shows it to be low so that we can reduce substantive testing‚ thereby reducing audit costs. When EDP is used in significant accounting applications‚ then you must consider the effects the computer has when evaluating the internal controls
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companies in the United States. Estimates of the direct costs of the law have been fairly straightforward to measure‚ but the indirect costs of the legislation like incremental audit and non-audit fees‚ additional audit effort and additional internal control audit expenses like payroll and technology are harder to estimate due to lack of detailed data on these expenses. Since audit fees had been rising prior to 2002 due to a riskier auditing climate and due to the demise of Arthur Anderson in the
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probability from high to low: Followed by Vandalism: 0.65; Brownout: 0.40; Power surge: 0.40; Flood: 0.15; Fire: 0.10; Software failure: 0.10; Equipment failure:0.08. Embezzlement:0. 05. Based on the probability‚ Estimated loss situation range Control cost In order to prevent that (Solutions): Vandalism 1‚000-15‚000 8‚000 1. Give limited people to access the data. (set up authorizations.) Make sure only people who needs what information and who have rights to edit what information. 2. Change the
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Ashley Davis CRJS270-1103A-05 Security and Loss Prevention IP5 8/18/2011 Abstract This paper is about the benefits of a comprehensive control program. It will also talk about what would be the benefits from a control program. It will also talk about what procedures should be taken into consideration for the controls‚ including independent checks‚ and a system for the documents and records. It will go into talking about a fraud hotline program to help detect fraud and also preventing fraud
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Computer Associates Ethics Paper Brief Summary: Based in Islandia‚ N.Y.‚ Computer Associates dominated the market for mainstream utility software‚ programs that helped the computers used by big companies run more efficiently. The company also offers security & storage software. Computer Associates used variety of tricks to inflate its reported profits during the 1990’s. In October 2000‚ the company changed the way it sold software and the way it reported its sales. The Securities and Exchange
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Answers Fundamentals Level – Skills Module‚ Paper F8 (UK) Audit and Assurance (United Kingdom) 1 (a) (i) Importance of reporting to those charged with governance June 2013 Answers In accordance with ISA 260 (UK and Ireland) Communication with those charged with governance‚ it is important for the auditors to report to those charged with governance as it helps in the following ways: (1) It assists the auditor and those charged with governance in understanding matters related to the audit
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effectiveness and efficiency of operation activities on the financial statements. Our firm will gladly provide reasonable‚ but not absolute‚ assurance services that are performed by professional auditors to enhance the credibility of internal controls‚ IT systems‚ financial statements‚ compliance with regulation and human resource practices. Our auditors will express conclusion reports that will enhance the confidence of users‚
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NATURE OF OPERATIONAL AUDIT • Also known as management audits and performance audits. • Conducted to evaluate the effectiveness and/or efficiency of operations. • Examinations of all or part of an entity to determine the degree of its operational efficiency‚ effectiveness and economy. • Also refers to the auditor’s study of business operations for the purpose of making recommendations about economic and efficient use of resource‚ effective achievement of business objectives
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Course Project This paper analyzes a fictional privately held company‚ Smackey Dog Foods‚ Inc. as well as its fictional auditor‚ Keller CPAs. The analysis is based on a Keller Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence‚ audit planning‚ audit stages‚ internal controls‚ confirmations‚ sample size‚ obtaining evidence‚ inventory‚ warehousing cycles‚ Professional Rules of
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