Example Of Audit Procedure

Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions?

LCC has conducted an audit of Apollo Shoes, Inc. balance sheets, the retained earnings, cash flows, and other related statements of income for the year ended December 31, 2006/2007. Apollo Shoes Inc management is responsible for maintaining the effective internal controls that goes along with the financial statements and how well the accuracy is going to be. LLC has evaluated the effectiveness of the said controls and with everything to see the relevance in the timing, the substantive in quality, and the comprehensive in nature. The responsibility of our firm is to express an opinion that is supported by audit evidence in

When analyzing the Pinnacle Manufacturing Financial Statements there multiple concerns that should be further investigated that I will explain in this memo. When identifying the year to year change and using financial ratios found on A6, there are a couple of concerns that need to be identified. The fact that the operating expense from fluctuated from an increase $892,861 from 2009 to 2010 and then decreased by $956,231 from 2010 to 2011 should be raised in question. At the same time Operating expenses income from operations decreased from 2009-2010 by $1,260,571 and increased from 2010-2011 by $78,541. The -23.10% from 2009-2010 is concerning in their ability realized from profit on their business operation. On the balance sheet there

SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit)

The audit would likely take a longer period of time to complete than the promised two and half weeks (the audit team completed the audit in this time frame in 2007) due to a) the expectation that extra work would be required related to possible asset and receivables write-downs as a result of the economic downturn; b) some accounting policies had been changed, which led to more time required from senior associates to help guide junior associates and co-op students through the company’s new set of circumstances and c) since the tax team did not attend the planning meeting, Dee and Michaels had to allocate time to answer their questions during the audit.

We have completed our risk assessment as requested by management. The following report will take you through our completed risk matrix, narratives about the risks and controls, and provide a summary of our findings. The areas covered

| |Check sales invoices against the sales journal to confirm they have been recorded on the|

As a Team Leader, you are responsible for encouraging team members to participate in continuous improvement activities. You also need to ensure that your team is informed of any changes or improvements to the way their work is done.

Compared to previous vertical audit this audit is successful in this process as there is no NC identified so that there is an improvement in the quality management

As a result of customer corrective actions, a team identified a weakness that lied in our inability to find our own factory non-conformances and they determined that we needed a better method for training our internal auditors. The team recommended that our tactic would be to bring

The company is struggling with the implementation of new IT systems. This new system has eliminated the audit work since it has problem on the accuracy for most of the report such as: internal management budget report, inventory status report, and payroll tax deductions, etc. especially when Barnes and Fischer is not familiar with the system. To be noted the new IT system was implicated in early 2011, but the new controller who was in charge of accounting reporting and be responsible for the accuracy just got hired few months before the year of 2011 end. Thus, the auditors may have difficulty time getting additional help from the controller as well as the information they need from the system and may increase the amount of time and cost on applicable testing required. Last but not lease, Ocean Manufacturing has changed auditors three times over the past 12 years. They also had problem on agreeing on auditing fees. This cause of concern. I believe there has to be something inherently wrong in the company system.

When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working

| * David should keep a straightforward and honest relationship with MAL. * David integrity will be compromised if these errors are discovered.

importer and exporter of raw materials and per assembled parts from their vast group of certified

Doctrine of privity of a contract dictates that only parties to a contract will have rights or obligations arising under a contract to hinder the imposition of burdens on and the granting of contractually enforceable rights to third parties.