Audit Program Design Part 2

Anderson, Olds, and Watershed rely on Apollo Shoes management for the financial statements. In addition, Apollo Shoes management is responsible for internal control over financial reports, ensuring the company complies with applicable laws and regulations, providing all financial records and other related financial information to the firm, and providing a representation letter at the conclusion of the audit confirming management’s

As a result of the Sarbanes-Oxley Act, a variety of methods used by auditors in the past to enhance audit efficiency and effectiveness will no longer be acceptable for integrated audits of public companies. Auditors sometimes used cycle rotation to test controls, this involved testing of controls in several areas of a firm's transaction cycles while doing a transaction walk-through to confirm the absence of control changes in the remaining cycles. This practice will no longer be acceptable in public company audits, since auditors must now report comprehensively on the effectiveness of management's internal control over financial reporting on an annual basis. Due to inherent limitations of internal controls, and the risk of management override, auditors will have to perform tests of details and analytical procedures for each material account balance or class of

I will coordinate and supervise a team of staff auditors. The staff auditors gather and test the evidence supporting the information in the audit. The audit manager, Darlene Wardlaw, reviews all audit work, prior to the review by a firm partner, Arnold Anderson. Mr. Anderson has the ultimate responsibility in ensuring an adequate review. A written report will complete the audit or review with AOW’s opinion of the audited information. It will show if the audited information is in accordance with accounting standards and also provides third parties with an adequate representation of Apollo Shoes, Inc.’s financial situation.

For my Introduction to Communication class I was asked to do a self-audit assignment recording my technologies use for two days and then undergo a digital detox for 24 hours. Throughout the two days of technology use I mostly used my computer, smartphone, and the tablet. From my diary most of my time is spend on the computer. The use of my computer and cell phone has helped me communicate with my friends through social media, to be entertained, to help take away my boredom. There was a lot of time I use it for school purposes because I have to access my e-mail or go on Canvas to do school work. The day of digital detox I did some writing for my other class. I couldn’t use my computer to type out my assignment, which I wasn’t use to. After writing out my assignment I realize how messy my writing was and it was so

| |1. Obtain and study a copy of the client's policies |BZ |6/12/OX |N/A | |

Payroll systems have evolved tremendously as software and computerized systems have spread throughout the workplace. While this has alleviated some of the hassle involved with processing payroll, it has also opened up a world of potential issues. Oftentimes, systems that appear both effective and efficient can become vulnerable if placed in the hands of dishonest employees or employers. Ultimately, while accounting information systems have resulted in exponential growth to the payroll system, it is also important to consider the possible weaknesses that lie beneath the surface.

Following the risk assessment procedures, substantive procedures are designed and conducted to detect material misstatements of relevant assertions. Substantive procedures include analytical procedures and tests of details. Analytical procedures involve evaluations of financial statement information by a study of relationships among financial and nonfinancial data. Tests of details may be divided into three types. One test is the test of account balances to address whether there are misstatements in the ending balance of an account. In the case of Crazy Eddie, auditors should have put greater attention to inventory and accounts payable accounts. The second test is a test of classes of transactions to determine whether particular types of transactions have been properly accounted for during the period. Crazy Eddies fraudulently classified these transshipping transactions as retail sales to inflate its sales revenue and continue growth at existing stores. A key ratio for retailers is to compare growth in existing stores to growth from new stores. The third and final test is a test of disclosures to evaluate whether financial statement disclosures are properly presented. Crazy Eddie prepared bogus debit memos of over $20 million to understate accounts payable.

Assessing the control solely based on examination might not justify a low control risk assessment, as human error is always a possibility in manual control processes. Although Brian Thompson initialed all of the credit memos, he might not have thoroughly examined the supporting documentation (i.e. customer return report and inventory receipt) each and every time to ensure proper authorization has occurred. As a result, the conclusion reached in R3(b) is more supportable.

Because the author's experience and knowledge of GAS is primarily limited to ACL, that is the software used to demonstrate the value of implementing GAS in this article. For more software products, see the exhibit in the Bagranoff and Henry article, cited in footnote 3, and the list of GAS in the Sayana article, cited in footnote 1.

* Management also responsible to create the policies needed to ensure the services are provided effectively and assets safeguarded.

Continuous Auditing is a part of a company’s internal control and is not implemented to replace regular auditing. Continuous auditing primarily focuses on frequency of risk and the effectiveness of internal control. Thus, continuing auditing is used to improve auditing organization, efficiency, and add value to a company performance.

The approach adopted by an audit firm to a specified audit assignment will be a key factor in determining the outcome of the audit. If auditors fail to adopt the correct audit approach then the likelihood of audit failure increases, failure which could lead to a damaged reputation and potentially costly litigation against the firm. This article is the first of a series on risk‑based auditing and audit evidence. AUDIT APPROACHES Essentially there are four different audit approaches: the substantive procedures approach the balance sheet approach the systems-based approach the risk-based approach. The substantive procedures approach This is also referred to as the vouching approach or the direct verification approach. In this approach,

0.4 Method In [2], IT audit constitutes of an exam- ination of the controls within IT infras- tructure. The review obtained from the evaluation gives information regard- ing certain aspects such as safeguard- ing assets, maintain data integrity and eective operation in order to achieve the companys goals. The evaluation can be performed in conjunction with nancial statement audit, internal au- dit. The purpose of IT audit diers from nancial statement audit, because the latter is adhering to standard ac- counting practices, while IT audit eval- uates the systems internal control de-

The function and purpose of audits and evaluation programs are to ensure that periodic, formal review occurs such that program implementation and budget can be informed. The audit and evaluation process serves to provide information to the teams responsible for execution of those programs regarding their results and work quality. It is essential that the audit and evaluation program procedures result in new information and do not duplicate previous efforts. Essentially, the audit and evaluation programs should answer questions that have not been fully answered by other analysis or that are essential to a long-term view of performance and that facilitate the ability to gain an objective view and independent perspective with respect to the results and quality of the programmatic efforts ("Foundations for Success," 2012).

We have done general operations audit of ABCD 1234 AND company WLL from 1.11.2012 to 20.11.2012 and submitting the draft audit report below..